Fourth quarter results, global signals, other factors to pay attention to

The Indian stock market lost nearly 2 percent amid high volatility, with the Sensex down 1,141.78 points, or 1.95 percent, at 57,197.15, and Nifty closing 303.65 points, or 1.73 percent, down at 17,172 points in the week ending April 22. The US Federal Reserve’s hawkish comments about a May rate hike, higher bond yields, mixed quarterly numbers and a worsening war between Russia and Ukraine closed the market in the red.

Santosh Meena, Head of Research, Swastika Investmart Ltd. said: “It was the second week of decline in the Indian stock market on the back of weak global indices, profit disappointment from IT names, and pain in the HDFC twins. It is expected to start next week as well. On a sad note on the back of the sharp decline in the US market on Friday after hawkish comments by the US Federal Reserve and weak earnings.Global signals may dominate next week along with the April F&O expiration and fourth-quarter earnings.With regard to the fourth-quarter earnings, the market will react to the results ICICI Bank on Monday while Bajaj Finance, HDFC Life, Bajaj Auto, HUL, Ambuja Cement, Axis Bank, Bajaj Finserv, Vedanta, Indusind bank, Maruti Suzuki, Ultratech Cement and Wipro will be other major results scheduled for next week.”

On the sectoral front, the Nifty Information Technology Index lost 5.6 percent and the Nifty Media Index lost 4 percent. The Nifty PSU and Nifty Bank lost 4 percent each. However, the Nifty Automotive Index was up 3 percent, and the Nifty Energy and Oil & Gas Index was up 2.4 percent each.

global signals

Vinod Nair, head of research at Geojit Financial Services, said, “Global markets have moved cautiously in the context of inflation data releases, war uncertainty, volatile crude oil prices, hawkish Fed policy and mixed quarter results.”

Sell ​​FII
FIIs have been selling consistently in the Indian stock market and their behavior will be significant amid fears of higher interest rates in the USA. Doubts remain about the war between Russia and Ukraine while the market will keep an eye on crude oil prices. If we look at the derivative data, the buy-to-be ratio sits at 0.91 while the long exposure to FII index futures is at 47 percent, both heading towards oversold territory.

elegant artistic look

In terms of OI distribution, above OI stands on the sell side at the 17,000 mark, and below, we can expect more selling pressure. On the upside, the open interest of call options is evenly distributed between 17,200 and 17,500.
Technically, Nifty has a sacred support level of 16,800 and below that, Nifty is vulnerable to a significant decline, however the support level of 16,600 is also another support level as a 61.8 percent retracement from the previous rally. On the upside, the 100-DMA of 17,300 is an immediate and strong hurdle while the 20-DMA of 17,450 is the next critical hurdle.
Banknifty is likely to give up the psychological support level of 36000 while 35000 represents the next critical support level. On the upside, 36,500-37,000 are critical supply areas.

What should be the investor’s strategy this week?

“Traders are advised not to trade aggressively until the trend becomes clear and also, unlike in previous weeks, we do not leave any compelling idea in individual stocks either. Therefore, one needs to be selective when it comes to trading,” said Samet Chavan, Senior Technical and Derivatives Analyst, Angel One. It’s a stock-centric approach, and strict stop-losses should follow for momentum bets.”

Disclaimer: The opinions and investment advice provided by the experts in the News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before making any investment decisions.

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