Stock Markets Monday: No Clear Indications on Direction Despite Two-Week Consolidation; expect a decisive breakout of the 6,800-17,300 area in Nifty, expert says


Scholarships this Monday: Indian stock markets ended the week in the red. The BSE Sensex fell more than 460 points or 0.8% to settle at 57060.87 while the Nifty50 ended at 17102.55, down 142 points or 0.8%. Bank Nifty fell almost 1% or 334 points to close at 36088.15.

The correction was seen even in the broader markets, with the Nifty Midcap 100 falling more than 250 points to end the last weekly trading session at 29880.35.

Foreign Institutional Investors (FIIs) were net sellers on Friday and sold Indian shares worth Rs 3648 cr in the spot market. Meanwhile, Domestic Institutional Investors (DII) bought shares worth Rs 3,490.

Market expert Sandeep Jain called Friday’s session odd, adding that markets opened strongly amid positive global indices. The declines started in the second session and one of the reasons could be the new margin rules that come into effect from Monday. He said people should be prepared for this as the markets could see adjustments to the new rules over the next 3-4 trading sessions.

He said he didn’t see a bull running next week.

Not everything was negative as the Volatility Index or VIX dipped below 20 which is a good sign, Tradeswift Director said while speaking to Zee Business’ Swati Raina on popular TV show BazaarAgleHafte (#BazaarAgleHafte).

Markets held the consolidation range tightly for the second week in a row and eventually ended with a decline of almost half a percent. Jitters in global markets combined with a mixed start to fourth quarter earnings on the home front kept volatility high throughout the week, said Ajit Mishra, vice president of research at Religare Broking.

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“Finally, the benchmarks Sensex and Nifty came in at 57,060.87 and 17,102.55 respectively. gas and metals being the main losers. On the other hand, autos and consumer goods ended in the green. Meanwhile, the broader indices underperformed and lost between 1.4% and 2.7,” Mishra said.

The week ahead is a shortened holiday week and it is going to be critical as some of the important events and data are lined up. Participants will first react to automobile sales figures. On the macro side, markets will be watching data from the manufacturing PMI and services PMI on May 2 and May 5 respectively.

IPO of LIC: Insurance giant LIC’s long-awaited IPO opens on May 4. On the global front, the outcome of the US Fed meeting will be in focus. Markets are pricing in a 50 basis point rate hike this time around and the focus would be on their commentary on the quantum of future rate hikes.

Clever trading strategy: “It’s almost two weeks of consolidation, but the markets offer no indication of the next directional move. We suggest waiting for a decisive break of the 16,800-17,300 area at Nifty. In the meantime, participants should limit their positions and focus on identifying sectors/themes that show resilience to consolidation bias.Investors, on the other hand, should not focus too much on short-term swings and watch earnings closely. looking for clues.


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