InvestorQ : What in your view are the major stock market triggers for the next trading week starting 30th May?
Niti Shenoi made post

What in your view are the major stock market triggers for the next trading week starting 30th May?

diksha shah answered.
2 months ago

The next week will see important data flows. Of course, Monday will be a holiday for the US markets, being Memorial Day. Here are some major cues for the coming week.

a) Indices were led higher by banks and autos. Nifty closed 1% higher while Bank Nifty was 4% higher in the week. Banks and autos gained sharply on inflation control story, with all the government initiatives. Mid-cap indices lagged, down 1% for the week. To support the inflation control story, US PCE inflation was also down 30 bps for April 2022.

b) The coming week will be the last week for corporate results. Major large cap results include Sun Pharma, LIC, Jubilant Foodworks, Delhivery and Dixon Technologies. Key mid-cap results to watch are Dilip Buildcon, Dish TV, Equitas Holdings, Nureca, TTK Prestige and PTC India.

c) For the coming week, the level of 16,400 on Nifty will be critical and uptrend will only commence above that level. The OI accumulation hints at Nifty in the range of 16,000 to 17,000, a fairly broad ambiguous range. Keep an eye on IPO listings of Ethos on 30th May, e-Mudhra on 01st June while Aether Industries will list on Friday, 03rd June.

d) Important macro data flows are expected this week. Core sector data on 31st May and PMI on 01st June are both high frequency data points and hence the short term momentum will be the key to gauge macroeconomic recovery in the markets. Big GDP data for Q4 and FY22 is expected to be lower than originally anticipated at under 3%.

e) For May 2022, FPIs have been net sellers to the tune of Rs44,346 crore while domestic institutions more than compensated by buying Rs47,465 crore of equities in May 2022. The rupee, closed stronger at 77.60/$ level, the first week of strength after 7 consecutive weeks of rupee weakness, as inflation fears tapered.

f) In terms of global data flows, US data focus on FOMC Member Speak, PMI, JOLTS, API Crude stocks, jobless claims, factory orders, unit labour costs. For the rest of the world, the focus will be on UK PMI, HPI; EU CPI, Lagarde speak, jobs, Retail Sales PMI; Japan IIP, Retail Sales; China Caixin PMI.