Reliance Shares to Fii’s Behaviour: Top 5 Triggers for the Stock Market This Week

Stock market this week: After a long weekend, Indian stock markets witnessed considerable volatility last week in which it initially corrected after gapping lower and NSE Nifty almost tested the 16,800 levels. It rebounded from that level mid-week and broke above the 17,400 mark but was not done yet as it gave up some of the gains from the last trading session and finished below 17,200 with a weekly loss of 1.74 percent. On Friday, Indian stocks snapped a two-day winning streak on April 22, hurt by Fed Chairman Powell’s hint of an imminent 50bp rate hike in June.

So when it reopens on Monday; Global signals, F&O expiration, Q4 earnings, etc. are expected to dominate the stock market this week. Here we list the top 5 triggers for Indian stocks this week What traders and investors should be aware of:

1]Reliance Stock Price Movement: The Reliance Industries Limited (R‎IL) has canceled $Rs 24,700 crore retail deal with Future Group that will have its impact on the Indian stock market. “Reliance Industries weighs about a sixth of Sensex’s net strength and is considered one of the heaviest stocks on Dalal Street. Following RIL’s announcement to cancel its retail business deal with Future Group, shares in Reliance Industries are expected to “Reliance will feel the heat of Monday’s sell-off and a few more sessions ahead. Therefore, it is important for investors to keep an eye on RIL’s share price movement when the market reopens on Monday,” said Avinash Gorakshkar. , head of research at Profitmart Securities.

2]FII behavior: Ask stock market investors to keep an eye on the FII trading pattern; Santosh Meena, head of research at Swastika Investmart Ltd, said: “IFIs are continually being sold on the Indian stock market and their performance will be important amid concerns of aggressive rate hikes in the US.” . He said foreign investors have been continuously selling off Indian indices since October 2021 (except for one week earlier this month). In April 2022, the IIFs sold Indian shares worth $29,206.19 crore to date. Therefore, it is important to keep an eye on FII’s trading behavior as the status quo in its trading pattern would mean a strong sell-off at the highs or a heavy beating in the early sessions.

“If we look at the derivatives data, the put-call ratio is at the 0.91 level, while the FII’s long exposure in index futures is at 47%, both heading towards the oversold zone Santosh Meena said.

3]US GDP data: US Gross Domestic Product (GDP) data is expected on April 28, 2022. “In the event of disappointing US GDP data, concerns about inflation will rise further, leading to to sell-off pressure on global stock markets, including Dalal Street,” said Avinash Gorakshkar of Profitmart. Values.

4]Fourth quarter results: “In terms of Q4 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 , Ultratech Cement and Wipro will be other key results scheduled for this week,” said Santosh Meena of Swastika Investmart.

5]Dollar Index: Stock market investors should also keep an eye on the dollar index. The dollar index has risen to record highs of 101 and any further rise in the index may lead to more FII being sold on Dalal Street. “Historically, FIIs become net sellers on Indian indices when the dollar index gains. With the index rising to a record level, any further rise in the dollar index would mean further selling pressure from FIIs on Indian stocks,” said Avinash Gorakshkar.

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