Domestic equity market benchmarks BSE Sensex and Nifty 50 were likely to see a huge gap-down start on Monday, as suggested by trends on SGX Nifty in early trade. Nifty futures were ruling at 16,218 down 202 points or 1.23 per cent on Singaporean Exchange. In the previous session, the 30-share index Sensex fell 866 points or 1.56% to close at 54,835, while the NSE Nifty 50 shed 271.4 points and settled at 16,366, down 1.63%. Analysts say since global cues are largely dictating the trend, focus more on overnight risk management and maintain position on both sides.
Key things to watch out for before market opens 9 May 2022
Last day to subscribe to LIC IPO: Life Insurance Corporation of India’s initial public offering was subscribed 1.79 times on the 5th day of bidding. The issue opened for subscription on 4 May 2022 and continues to see a strong interest from all investor categories.
FPIs net sellers: FPIs continued selling in the early days of May also with a net sell figure of Rs 6723.59 crore through 6 May. Analysts say that since markets have turned very weak globally FPIs may continue to sell perhaps with reduced volume. “Even after the recent correction in the market, valuations are not cheap. Perhaps, if Nifty corrects another 5% from the current levels, FPIs are likely to turn buyers. With aggressive Fed tightening, lockdowns in China and the Ukraine war lingering the situation is not favorable for a sharp turnaround in markets,” VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
Key things to watch out for this week: This week, the market will track inflation numbers across the globe. “Although the numbers will remain high, the chances of a major market reaction are low given that the impact has already been factored in. In this range-bound market, it is advised to stick with sectors that are expected to be least impacted by inflation & yield rise like banking, IT, Pharma, and themes like green energy,” Vinod Nair, Head of Research at Geojit Financial Services, said.
Campus Activewear IPO share listing: Campus Activewear IPO, which got 51.75 times subscription, will list on stock exchanges on 9 May 2022. The issue was sold at a price band of Rs 278 to Rs 292 per equity share.
Nifty support, resistance: Nifty Put options OI distribution shows that 16000 has highest OI concentration followed by 16500 and; 16200 which may act as support for current expiry. Nifty Call strike 16900 followed by 16800 witnessed significant OI concentration and may act as resistance for current expiry, Rajesh Palviya, Vice President – Research ( Head Technical & Derivatives), Axis Securities said.
Global market set up: Asian stock markets were trading weak on Monday. Japan’s Nikkei 225 fell nearly 2%, while ehe Topix index shed 1.32%. S&P 500 stock futures led the way with a drop of 1%, while Nasdaq futures shed 0.9%. U.S. 10-year bond yields edged up to a fresh top at 3.15%.
FII and DII activity: On Friday, foreign institutional investors (FIIs) offloaded shares worth Rs 5,517.08 crore, and domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 3,014.85 crore worth of shares in the Indian equity market.
Stocks under F&O ban: No stock was under the F&O ban for seventh consecutive session on 9 May 2022. If the open interest of any stock crosses 95% of the MWPL (market-wide positions limits), all F&O contracts of that stock enter a ban period.
Q4 results today: BSE-listed companies such as UPL, PVR, Godrej Agrovet, Infibeam Avenues, Dalmia Bharat, Gujarat Narmada Valley Fertilizers & Chemicals, 3i Infotech, Aarti Drugs, BASF India, Borosil, Central Bank of India, CMS Info Systems, Craftsman Automation, Vedant Fashions, Suven Pharmaceuticals, VST Tillers Tractors, ISMT, Mold-Tek Packaging, Visaka Industries, and Vishwaraj Sugar Industries will release quarterly earnings on May 9.