InvestorQ : What are the major trading cues for the trading week commencing on 22nd of April and what should I watch out for before trading during the week?
sara Kunju made post

What are the major trading cues for the trading week commencing on 22nd of April and what should I watch out for before trading during the week?

3 years ago

The Nifty and the Sensex have hit record highs during the previous week and the trading set up for the coming week will depend on the following factors.

Key technical levels

For now, the next major target for the Nifty is the 12,000 levels and that may take some effort. To begin with the Nifty needs to hold above the 11,700 mark with volumes to get closer to the target 12,000. On the lower side, 11,550 could be a key level to watch out for.

Volatility Index

The volatility index (VIX) touched a high of 23 during the week and has remained above the 21 mark through most of the week. Normally, market has faced resistance at VIX levels closer to 25 and this is a number that needs to be watched closely. The uncertainty over the election outcome and the global economic scenario has led the VIX higher.

Foreign Portfolio Investments

The FPIs invested close to Rs.12,000 crore till date in the month of April and have been net buyers on more than 90% of the trading days. In fact, since late February, FPIs have infused close to $10 billion into Indian markets and that has taken market to new highs. We anticipate that the inflows may continue through the April as FPIs reallocate to India after a heavy sell off in 2018 at the height of the liquidity crisis.

Some key stocks to watch out for in the coming week

· Reliance could be in action due to strong set of numbers announced during the week. Although the ARPUs were down marginally in the fourth quarter, Reliance Jio could benefit from ARPUs bottoming out.

· HDFC Bank sustained 23% grown in net profits for the quarter and kept the Gross NPAS in check at around 1.36%. The results were announced on Saturday and hence the price impact may be visible on Monday.

· Jet will continue to be the overhang with little movement over the week end. With SBI selling off the aircraft and parking slots and landing rights of Jet to competition, most of the Jet staff has also joined competitors. Any operational revival of Jet may be extremely difficult. That will reflect in the stock price this week.

· DHFL continued to be under pressure due to the downgrading of its rating by Brickworks. This is likely to have a spill off effects on most of the NBFCs with vulnerable asset quality.

· L&T Infotech and Mindtree will also be in the news in the coming week. Mindtree had declared a special dividend of Rs.20 per share in addition to the regular dividend of Rs.7 per share. This may induce L&T Infotech to offer a lower price for the stock and shareholders may not really be interested.

· Expect volatility in the market ahead of the F&O monthly expiry that is scheduled on the 25th of April.