Stock market this week: The truncated week witnessed some cool-off in key indices as market participants looked to lighten up their positions ahead of the long weekend. Nifty 50 index ended below 17,500 mark with a weekly loss of 1.74 per cent. The 50-stock index has corrected from its swing high of 18,115 to end the week at below 17,500 mark.
During this corrective phase, the midcap space initially showed relative outperformance as the broader markets continued to witness good buying interest, however, the Nifty Midcap index witnessed some profit booking in last couple of sessions ahead of the long weekend. As market is going to open on Monday after a long gap it is important for investors and traders to know the important triggers that may set the momentum for the secondary market for short term.
Here we list out top 5 factors that may dictate Indian stock market this week:
1] Q4 results/ corporate earnings: In this highly volatile market, a good number of investors and traders have started following stock specific trade. For such traders and investors, Q4 earnings of the company getting announced this week will be important.
Divam Sharma, Founder at Green Portfolio said, “As the results season has kicked off, we will see more results over the coming week with some large FMCG companies, banks, and tech companies like HDFC Bank, HCL Tech, Nestle and ICICI Bank.”
2] Covid-19 cases in India: Concerns of Covid fourth wave are round the corner and 1150 new Covid cases have been reported in India in last 24 hours (as per data updated at 8 AM today by the Health Ministry). So, there is rise in fresh Covid cases in India as the figure stood at 949 on Friday.
“Amid FIIs being on the net sellers side, it will be important to see how Covid fourth wave pangs out in India. Any spike in fresh cases may further trigger selling by FIIs,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.
3] FIIs trade pattern: After siding with DIIs as net buyers for few sessions, FIIs have once again on selling spree. Since 6th April 2022, FIIs have remained net seller on successive sessions.
“Nifty is facing resistance at 17,750 to 17,800 levels. If FIIs continue to remain net sellers, then chances of Nifty breaking this hurdle will become grim. Hence, FIIs’ trade pattern first one to two sessions this week is important,” said Avinash Gorakshkar.
4] Global inflation: Last week US inflation has hit 40 years high and any rise in crude oil may further spark inflation concern for global equity markets.
“Amid floundering peace talks in Russia-Ukraine war, chances of rise in fuel prices are high and it may spark fresh inflation concern for global markets as it may nullify US Fed’s initiatives to curb inflation. So, all factors related to inflation needs to remain in one’s focus this week,” said Anuj Gupta, Vice President — Research at IIFL Securities.
5] US IIP data: After disappointing inflation data last week, whole world is eagerly waiting for US IIP numbers this week as it would indicate macro-economic status of the America economy. Any further disappointing figure from the US government would hit equity investors’ sentiment across globe and Dalal Street won’t be an exception to it.
Reference Link:- https://www.livemint.com/market/stock-market-news/q4-results-to-covid-cases-in-india-5-factor-that-may-dictate-stock-market-this-week-11650169716988.html