Indian markets remained bearish for the second consecutive week ended May 13 as the benchmark share indices have lost nearly 4 per cent. The selling pressure continues to mount day-by-day as headwinds become stronger. Persistent worries over rising inflation, the possibility of further rate hikes by the global central bank, China lockdown and a weakening rupee kept the investors on the edge. During the last week, BSE Sensex declined 2,041.96 points (3.72 percent) to close at 52,793.62, while the Nifty50 shed 629.05 points (3.83 percent) to end at 15,782.20 levels. However, in the month of May Sensex and Nifty have lost more than 7 percent each.
In absence of any major event, market participants will be closely eyeing the performance of global stocks, the Russia-Ukraine war updates and China’s COVID situation for cues. Further, the listing of country’s largest insurer, LIC, would also be on the radar. On the data front, WPI Inflation numbers scheduled for May 17 would also be looked at, experts say.
Speaking on the major triggers that may dictate stock market next week, Anuj Gupta, Vice President — Research at IIFL Securities said, “The week ended on Friday was the worst in last two years. Dollar index rising to record 20 years high and crash in commodity prices were one of the major reason for equity market crash this week. These two are expected to keep dictating the global markets including Dalal Street next week as wll. One has to keep an eye on the upcoming company results as well.”
LIC Listing
After overwhelming response to the mega IPO of Life Insurance Corporation (LIC) , all eyes are now on its listing. LIC will make its debut on the BSE and NSE on May 17 as per the schedule published in the prospectus.
Rupee Vs Dollar
“Last week, Indian National Rupee (INR) tumbled to record low triggered fresh selling by FIIs. If rupee continues to remain weak then FIIs selling may further pick up momentum and hence rupee-dollar deviations is an important factor that may dictate stock market next week.” said Anuj Gupta of IIFL Security.
Q4 Results
The earnings will remain in focus as more than 400 companies are going to announce their March quarter results in next week. Bharti Airtel, DLF, Indian Oil Corporation, ITC, Ashok Leyland, Lupin, Dr. Reddy’s Laboratories, InterGlobe Aviation, Godrej Consumer Products, Hindustan Petroleum Corporation, NTPC and Shree Cement are among the big names to declare earnings next week.
Among other Bharat Forge, Century Plyboards, GlaxoSmithKline Pharmaceuticals, Multi Commodity Exchange Of India, Raymond, Shankara Building Products, Uttam Sugar Mills, V.I.P.Industries, Bajaj Healthcare, E.I.D. Parry (India), GMR Infrastructure, Indoco Remedies, IRB Infrastructure Developers, Dr. Lal PathLabs, Mangalore Chemicals & Fertilizers, Minda Corporation, Sun Pharma Advanced Research Company, Zydus Wellness, Finolex Industries, Granules India , Indraprastha Gas, Indian Overseas Bank, LIC Housing Finance, Pidilite Industries, Dhanlaxmi Bank, Gland Pharma, Punjab & Sind Bank, Ramco Systems, Ujjivan Financial Services, Amara Raja Batteries, Bajaj Hindusthan Sugar, Indiabulls Housing Finance, IDFC, JK Tyre & Industries, One 97 Communications, Pfizer, Sobha, Thermax, Zydus Lifesciences, and J.K.Cement, to declare their earnings between May 16-21.
FII Selling
Foreign institutional investors (FIIs) continued their selling for the eight straight month (May 2022). FIIs sold equities worth of Rs 19,967.57 crore, while domestic institutional investors (DIIs) bought equities worth of Rs 18,202.10 crore, in the last week.
Nifty Technical Outlook
Santosh Meena, Head of Research, Swastika Investmart Ltd., said: “Technically, the Nifty is trading near the previous swing low of 15,670 and most of the momentum indicators are trading in oversold territory, therefore, we can expect a bounceback towards 16,180/16,400 levels while if the Nifty slips below the 15,670 level then selling pressure may be intensified towards 15,500/15,000 levels.”
Bank Nifty
“Banknifty is also continuing its southward journey and 33,000 is an immediate psychological support level where we can expect some bounceback while below, the 33,000 level, 32,000 will be the next important support level. On the upside, 34,000/34,500/35,000 will be an important hurdle,” Meena said.
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