Focus on stocks ahead of results

The period April 27-May under review saw April futures expire on a very smooth note. The usual volatility witnessed was missing and the bulls extended their lead over the bears in the expiry week. April futures gained 970 points or 5.72 per cent to close at 17,915 points. It was a big series gain. Markets in the four-day week gained on the first three trading sessions and lost on the fourth. BSE Sensex was up 892.72 points or 1.48 per cent at 61,193.30 points, while Nifty gained 276.25 points or 1.55 per cent to close at 18,089.85 points.

Dow Jones gained on two of the five trading sessions during the week. It gained 153.70 points or 0.46 per cent to close at 33,684.53 points. The FED would be meeting on Tuesday and Wednesday (May 2-3) to review interest rates. It is widely believed that rates would be raised by 25 basis points and this would be continuously since the cycle began way back in March 22. The street also believes that this would be the last rate hike and there would be a pause hereafter. The fall of 367 points in Dow on Tuesday could be a precursor for the fact that this being the last hike before a pause may not be a reality. Alternatively, the minutes of the meeting may have nothing to indicate that a pause would happen.

GST collection for April 2023 has taken a quantum jump and touched 1.87 lakh crore. Earlier, this figure was hovering around 1.5 lakh crores. This gives an indication that the collection from GST could now be targeted in the region of 21-23 lakh for the current fiscal year. This is indeed a very positive number.

The offer for sale from Mankind Pharma Limited received excellent response from institutional investors for its issue of 4crore shares. The overall issue was subscribed 15.32 times. QIB portion was subscribed 49.16 times, HNI portion was subscribed 3.80 times and Retail was subscribed 0.92 times. There were 4.62 lakh applications. Shares of Mankind Pharma Limited would be listed on Tuesday the 9th of May.

IPO or primary market seems to have slowed down significantly. There is an issue of units of a Real Estate Investment Trust or REIT opening next week. Nexus Select REIT is tapping the markets with its offer for a fresh issue and offer for sale to garner Rs3,200 crore. The issue would open on Wednesday (May 9) and close on Friday (May 11). The price band is Rs95-100. The NAV of the trust as on the date of the issue is Rs127.73 as of December 31, 2022. This indicates that there is a substantial discount being offered and the same is comparable with what listed REITS are available at. The roadshow would be held on Wednesday (May 3) in Mumbai and more details would be available post the same.

The period May 4-10 would be determined or influenced by what the FED Chairman says in his conference post the meeting. The key factors awaited are the trend of inflation and direction of rates post today’s outcome. To predict what the Chairman would say is almost invisible. However, key levels of resistance would be at 18,350-18,400 on Nifty and at 62,400-62,550 points on BSE Sensex. Support would be at levels of 18,050-18,100 and at 61,500-61,650. If the support is broken, the next level would be at 17,600-17,650 and at 59,700-59,850 would act as strong supports.

Activity in mid-cap and small-cap stocks has picked up big time and this is because the biggies have declared results and now the action has shifted focus. The strategy should be to concentrate on stocks which are yet to declare results in the mid-cap and small-cap space and be quick in taking decisions as the movement here is very rapid and swift. Trade cautiously.

(The author is the founder of

Kejriwal Research and Investment Services, an advisory firm)