What are the major trading cues for the coming week that we need to focus on for the last week of April 2022?

Here are some of the major cues for the coming week starting on 25th April 2022.

a) Nifty 2% after disappointing results from HDFC Bank and Infosys. However, the pressure was higher in smaller stocks with Nifty Mid-Cap losing 3.6% and Nifty small-cap losing 2.7% during the week. Ahead of LIC IPO, expect selling out of smaller stocks.

b) Two major IPOs expected this week. Campus Activewear, the Rs.1,400 crore OFS opens on 26 April and the Rs.1,595 crore Rainbow Hospital IPO opens on 27 April. VIX at 17.69% should be positive for IPO demand, as they are coming after a long break.

c) Major Large-cap results for the week include HDFC Life, HDFC AMC, Bajaj Auto, HUL, Axis Bank, SBI Life, Maruti, Ultratech, and Wipro. Among mid-cap results, watch out for Yes Bank, KPIT, Macrotech, Century Textiles, Indian Hotels, Trent, and Ambuja Cements.

d) RBI MPC minutes on Friday hint that the MPC would focus on growth even at the risk of financial divergence. However, it would be driven by Indian consumer inflation. Meanwhile, Fed prepares for 50 bps in May-22, another 200 bps in 2022, and unwinding.

e) FPIs heavily sold Rs.18,400 crore in equities during the week, over and above Rs.1.40 trillion selling in FY22. There was heavy selling on all days Brent crude tapered to $107/bbl but now looks poised for $100/bbl plus levels, despite China COVID lockdown.

f) Among key macros, Core sector growth data is to be released on 29th April, Friday with a focus on tepid sequential core sector growth. Also, power is emerging as a big challenge with many plants approaching shutdown with an impact on power supply in states.

g) In key global data points, focus on US durable orders, home sales, house prices, crude oil stocks, Q1 GDP, jobless claims, and March spending. Also, key drivers include EU EIS Sentiments, Q1 GDP; Japan BOJ rates decision, unemployment, IIP, and retail sales.