This week, investors will closely watch the quarterly results of major companies, India’s infrastructure output, bank loan growth, deposit growth, and the US Fed interest rate decision.
Stock markets would be closed on May 1 on the account of Maharashtra Day.
The last week turned optimistic one for Indian equity markets amid relief from Middle East tensions and positive data from HSBC India Composite PMI. The composite index, rose to 62.2 this month from March’s final reading of 61.8.
This week, India’s infrastructure output, bank loan growth, deposit growth, quarterly results of blue-chip companies along with the US Fed’s decision on interest rate, and US unemployment data are major events that are expected to keep the markets buzzing.
Major quarterly results: In the ongoing result season, traders will be eyeing the earnings of prominent companies, including Tata Chemicals, UltraTech Cement, Havells India, Indian Oil Corporation, Adani Power, Ambuja Cements, Adani Enterprises, Adani Ports, Blue Star, Coal India, Dabur India, Adani Green Energy, Godrej Properties, MRF, Titan Company, and Kotak Mahindra Bank etc.
Economic data: In the coming holiday truncated week, which marks the start of a new month, investors will be watching out for infrastructure output, scheduled to be released on April 30. Infrastructure output in India increased 6.7 percent year-on-year in February 2024, following an upwardly revised 4.1 percent rise in January.
Important events: Stock markets would be closed on May 1 on the account of Maharashtra Day. On May 2, investors will be eyeing on HSBC Manufacturing PMI Final data. Bank loan growth, deposit growth and Foreign Exchange Reserves data will be out on May 3. Further, auto and cement companies will be in focus for the coming week as these companies will report their monthly sales figures.
US market data: On the global front, traders would be eyeing important economic data from the world’s largest economy, the United States (US), starting from the Dallas Fed Manufacturing Index on April 29, Redbook, CB Consumer Confidence, on April 30, S&P Global Manufacturing PMI, and Fed Interest Rate Decision on May 1, Fed Press Conference, Balance of Trade, Initial Jobless Claims on May 2, Unemployment Rate, S&P Global Composite PMI Final, on May 3, and at the weekend, Fed Goolsbee Speech and Fed Williams Speech on May 4.
Global macros: Vinod Nair, Head of Research, Geojit Financial Services said, “Relief from Middle East tensions, coupled with a correction in oil prices, and a bolstered Indian economic outlook fuelled by elevated composite PMI data from manufacturing and service sectors, propelled a market rally,”
Nair added that, however, the unexpected decline in US GDP and a surge in the US core PCE price index triggered a global stock market downturn on the last trading day.
The domestic market lagged its Asian peers as Q4 earnings remained largely subdued, with weak results from IT and a few index heavyweights also disappointing. The expectation of an improvement in asset quality and the RBI’s regulatory ecosystem for private banks led the PSU banks to outperform.
“We expect a consolidation in the near term, leading investors to seek refuge in bonds and gold. Additionally, upcoming US FED policy, US nonfarm payroll data will dictate the global market, while the ongoing Q4 earnings reports are poised to influence the domestic market dynamics”, Nair said.
Technical outlook for Nifty: Deepak Jasani, Head of Retail Research at HDFC Securities said Nifty ended lower on April 26, snapping a five-day rally. At close, Nifty was down 0.67 percent or 150.4 points at 22419.9. Nifty formed a bearish Dark Cloud cover on daily charts on April 26. It made a double top at 22,625.
“On weekly charts, Nifty gained 1.23 percent and formed a high wave type candle suggesting consolidation/sideways move in the near term. Nifty could now remain in the 22,625-22,336 band for the near term. A breach of the lower band could take it to 22,148,” Jasani said.
Bank Nifty: Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said that despite facing selling pressure from higher levels, the Bank Nifty index managed to defend the crucial support at 48,000. “The bullish sentiment persists as long as it remains above this level, where significant open interest is concentrated on the put side. Currently, the immediate hurdle lies at 48,600 and a decisive breakthrough above this level could pave the way for new all-time highs in the index”, Shah said.
Disclaimer: rojgarlive Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
