Market watch: Dalal Street week ahead
Over 1000 companies are set to announce their Q3 FY24 results, including major players like Mahindra & Mahindra, Eicher Motors, Hindustan Aeronautics, Mazagaon Dock Shipbuilders, and Phoenix Mills.
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The upcoming week in the Indian stock market is expected to be marked by several key events and factors:
Earnings Season Wrap-Up: Over 1000 companies are set to announce their Q3 FY24 results, including major players like Mahindra & Mahindra, Eicher Motors, Hindustan Aeronautics, Mazagaon Dock Shipbuilders, and Phoenix Mills. This will likely bring attention to sector-specific performance and overall corporate health.
Inflation Data: Both India and the US will release inflation figures for January. India's Consumer Food Price Index (CPI) is expected to show a slight easing to a three-month low of 5.09 percent. Meanwhile, the US will release revised inflation figures for 2023 and January's CPI reading. These numbers will be closely watched by market participants for their implications on monetary policy decisions.
Primary Market Action: Several IPO listings and subscription closings are scheduled, including Appejay Surendra Park Hotels, Rashi Peripherals, Jana Small Finance Bank, Capital Small Finance Bank, Entero Healthcare Solutions, Vibhor Steel Tubes, Rudra Gas Enterprise, Ape Solar Enterprise, Polysil Irrigation Systems, and Wise Travel India. This activity reflects ongoing investor sentiment and appetite for new offerings.
Foreign Institutional Investments (FII) Flows: The market will continue to monitor FII and DII activity. FIIs have been selling equities amid rising US bond yields, with significant activity seen in financials. Long-term investors may find value in banking stocks, while FIIs have shown interest in IT and telecom sectors.
Oil Prices: Oil prices have risen by about 6 percent amid concerns about Middle East supply. With India's high oil import dependency, rising crude prices remain a concern for the nation's economy.
Technical Analysis: Technical indicators suggest key support and resistance levels for Nifty and Bank Nifty. Traders will watch these levels for potential market movements.
F&O Cues: Options data indicates key levels for Nifty 50, with significant open interest seen at specific strike prices. The India VIX, reflecting market volatility, has remained high for the past weeks, signaling continued volatility ahead.
Corporate Actions: Various corporate actions are scheduled for the week, contributing to market dynamics and stock-specific movements.
Global Economic Data: Key global economic data points will also be monitored for their potential impact on market sentiment and global market trends.
The Indian stock market is likely to experience volatility in the upcoming week, driven by a combination of earnings releases, inflation data, primary market activity, FII flows, oil prices, technical analysis, F&O cues, corporate actions, and global economic developments. Investors and traders should stay informed and exercise caution in their decision-making process.
