Reliance Shares Fii Behavior: Top 5 Stock Market Catalysts This Week
Stock market this week: After a long weekend, Indian stock markets experienced a lot of volatility last week as they initially corrected after a bearish gap opening and NSE Nifty nearly tested the 16800 level. It recovered from that level during the middle of the week and crossed the 17400 mark but is not over yet as it gave up some of the gains in the The last trading session ended below 17,200 with a weekly loss of 1.74 percent. Indian stocks on Friday snapped a two-day winning streak on April 22, dragged down by Federal Reserve Chair Powell’s hint of an imminent 50 basis point rate hike in June.
So, when you reopen on Monday; Global signals, F&O expiration, fourth-quarter earnings, etc. are expected to dominate the stock market this week. Here we are listing the top 5 triggers for Indian stocks this week that traders and investors need to watch out for:
1]Reliance share price movement: Reliance Industries Limited (R IL) abolished RA Rs 24,700 crore retail deal with Future Group will have an impact on the Indian stock market. “Reliance Industries weighs about one-sixth of Sensex’s net strength and is one of the heavyweights on Dalal Street. Following Reliance’s announcement of the cancellation of its retail deal with Future Group, Reliance shares are expected to feel a sense of turmoil,” said Avinash Gurashkar, head of research at Profitmart Securities.
2]FII behaviour: Require stock market investors to monitor the FII trading pattern; Santosh Meena, Head of Research at Swastika Investmart Ltd, said, “Fishing firms are consistently selling out in the Indian stock market and their behavior will be significant amid concerns about higher interest rates in the US.” He said that foreign investors have been selling continuously in Indian indices since October 2021 (except for one week at the beginning of this month). In April 2022, FIIs sold the value of Indian stocks R29206.19 crore so far. Therefore, it is important to monitor FII trading behavior as the status quo in their trading pattern means heavy selling on rallies or extremes in the first few sessions.
“If we look at the derivative data, the buy-to-sell ratio sits at 0.91 and the long exposure FII index futures is at 47%, both heading towards oversold territory,” Santosh Mina said.
3]US GDP data: US GDP data is expected on April 28, 2022. Profitmart’s Avinash Gorakshkar said: “In the event of disappointing US GDP data, inflation concerns will increase, leading to selling pressures on global stock markets including St. Dalal”. Guarantees.
4]Fourth Quarter Results: “In terms of fourth-quarter earnings, the market will react to ICICI Bank results on Monday while Bajaj Finance, HDFC Life, Bajaj Auto, HUL, Ambuja Cement, Axis Bank, Bajaj Finserv, Vedanta, IndusInd Bank, Maruti Suzuki and Ultratech Cement said Santosh. Swastika Investmart’s Mina: “Wipro will have other major results due this week.”
5]Dollar Index: Stock market investors need to watch the dollar index as well. The dollar index rose to reach 101 levels and any further escalation in the index may lead to more selling of FIIs in Dalal Street. “Historically, FIIs have become net sellers in Indian indices when the dollar index rises. With the index at a record high, any further rise in the dollar index would mean more FII selling pressure on Indian stocks,” said Avinash Gorakshkar.
Not giving an opinion: The opinions and recommendations above are those of individual analysts or brokerages and are not issued by the mint.