Q4 GDP, Tata Steel Earnings, Monsoon Arrival: The Week Ahead
The big event traders will await during the week is the country's quarterly GDP figures, which will be out on May 31.
After a record-breaking run last week, traders will closely watch out for the country's quarterly GDP data, core industrial output and results of the last of the Nifty earnings for the next leg of the rally.
On the international front, market participants will eye the US GDP, and China's official manufacturing and non-manufacturing PMI data.
India's equity gauge registered another history, as the Nifty tested the 23,000 mark and Sensex surpassed the 75,000 mark last week.
With foreign portfolio investors increasing their long-short ratio, markets might be poised for further up-moves. Markets are seeing a significant boost from the Indian economy, political stability, and expectations of a BJP-led alliance winning a third term, according to market analysts.
Easing in foreign institutional investor selling and healthy domestic macro data supported positive sentiments in the market, according to Siddhartha Khemka, head, retail research, Motilal Oswal Financial Services Ltd. "Overall we expect the market to witness a gradual up-move and see some volatility next week, as both election and earning season are nearing the end."
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Markets Last Week
With record-breaking sessions for two consecutive days, the week-ended May 24 marked the best week for Nifty in over three months.
On Friday, the NSE Nifty 50 settled 10.55 points, or 0.05% lower at 22,957.10, and the S&P BSE Sensex ended 7.65 points, or 0.010% down at 75,410.39.
Intraday, Nifty rose 0.23% to a record high of 23,026.40, and Sensex gained 0.29% to a fresh high of 75,636.50. However, by end of trade, Nifty snapped a six-day winning streak, while Sensex reversed a two-day gain.
The NSE Nifty 50 and the S&P BSE Sensex rose 2.02% and 1.90%, respectively, this week—the highest percentage gain since Feb. 4.
On NSE, all 12 sectors gained in the week-ended May 24. The NSE Nifty Media was the top performer with over 4% gain, and the NSE Nifty FMCG sector was the top loser with barely 1% gain.
F&O Cues
Nifty May futures were up by 0.06% to 23,019.6 at a premium of 62.5 points, with its open interest up by 5.02%. Nifty Bank May futures were up by 0.42% to 49,045.15 at a premium of 73.5 points., while its open interest was down by 2.46%.
Open interest distribution for the Nifty May 30 series indicates that the 23,000 level is seeing the most put strikes, and call strikes of 24,000 have the maximum open interest.
For the Bank Nifty options' May 29 expiry, the maximum call open interest was at 50,000 and the maximum put open interest was at 48,000.
The put writers mounted a massive challenge on the call writers at the 23,000 Strike and the option activity at this strike will provide cues about Nifty’s future direction, according to Ashwin Ramani, derivatives and technical analyst, SAMCO Securities Ltd.
Domestic Cues
The big event traders will await during the week is the country's quarterly GDP figures, which will be out on May 31. The Reserve Bank of India's April bulletin indicated sustained momentum in domestic demand conditions for March 2024.
The country's central bank, using its economic activity index, forecasted GDP growth for the January–March quarter at 7.3%.
Data of the core sector output for April will be announced by the commerce ministry on the same day. Government finances for fiscal 2024 and for April will be released by the Controller General of Accounts.
On May 29, the India Meteorological Department will release the weekly subdivision-wise rainfall distribution data. And on May 31, in a major relief, as projected by the IMD, the southwest monsoon will likely hit the coast of Kerala.
Global Cues
On the international front, the United States GDP, China's official manufacturing and non-manufacturing PMI, and Japan's unemployment will be the big events to watch out for.
On May 28, Ireland, Norway and Spain will plan to formally recognise the Palestinian state, comprising Gaza and the West Bank, according to Bloomberg.
Primary Market Action
After a stellar three weeks, the primary markets could see subdued activity during the next five sessions starting May 27. With no mainboard initial public offering or listings, the week will see issues of four companies in the SME segment.
Meanwhile, the street will witness the listing of Awfis Space Solutions Ltd. The IPO was subscribed 9.18 as of 3:00 p.m. on day three. The IPO, which aims to raise Rs 598.93 crore, consists of a fresh issues and an offer-for-sale.
The flexible workspace solutions company announced a price range of Rs 364–383 per equity.
On the SME segment, GSM Foils Ltd. will debut in the NSE SME space on May 31. The company raised Rs 11.01 crore with an issue price of Rs 32 per share.
Q4 Earnings This Week
The upcoming week will mark the end of Nifty company's earnings for the fourth quarter. Tata Steel Ltd. will be the last in the pack to report it quarterly results on May 29
Other big names that will report their earnings during the week starting May 27, include Life Insurance Corp., Indian Railway Catering and Tourism Corp., and Apollo Hospitals Enterprise Ltd. among others.
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Corporate Action Ahead
On the corporate actions front, Infosys Ltd., Indian Energy Exchange Ltd., CMS Info Systems Ltd., and JSW Energy Ltd. will be the big names that have record dates for their interim/final dividend in the coming week.
Meanwhile, Ajanta Pharma Ltd. will engage in a buyback of shares on May 30 and the shares of Davangere Sugar Co. will undergo a stock split on May 31.
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
