Reliance Shares Fii Behavior: Top 5 Stock Market Triggers This Week

Scholarship this week: After a long weekend, Indian stock markets saw considerable volatility last week, where they initially corrected after a gap at the open and NSE Nifty nearly tested 16,800 levels. It recovered from that level mid-week and broke above the 17,400 mark, but it wasn’t over yet as it gave up some of the gains from the last trading session and ended below of 17,200 with a weekly loss of 1.74%. On Friday, Indian stocks ended a two-day winning streak on April 22, impacted by Fed Chairman Powell’s hint of an impending 50 basis point rate hike in June.

Thus, when reopening on Monday; global indices, F&O expiry, Q4 earnings, and more. are expected to dominate the stock market this week. Here we list the top 5 triggers for Indian stocks this week that traders and investors should watch out for:

1]Reliance stock price movement: Reliance Industries Limited (R‎IL) canceled A 24,700 crore retail deal with the Future Group that will impact the Indian stock market. “Reliance Industries weighs around one-sixth the net strength of Sensex and is considered one of the heaviest stocks on Dalal Street. Following RIL’s announcement that it was canceling its business deal with Future Group, shares of Reliance are expected to feel the heat of the sell-off on Monday and more sessions to come, so it is important for investors to keep an eye on the development of RIL’s share price when the market reopens on Monday,” said Avinash Gorakshkar. , head of research at Profitmart Securities.

2]FII behavior: Ask stock market investors to keep an eye on FII’s trading structure; Santosh Meena, Head of Research at Swastika Investmart Ltd, said: “FIIs are continuously selling in the Indian stock market and their behavior will be important amid fears of aggressive US rate hikes.” He said foreign investors have been continuously selling on Indian indices since October 2021 (except for one week earlier this month). In April 2022, FIIs sold Indian shares worth 29,206.19 crores till date. It is therefore important to keep an eye on the trading behavior of FII, as the status quo in their trading model would mean a strong sell-off on the highs or heavy hits in the early sessions.

“If we look at the derivative data, the put-call ratio is at the 0.91 level while the FII’s long exposure to index futures stands at 47%, both are heading towards the zone oversold,” said Santosh Meena.

3]US GDP data: U.S. gross domestic product (GDP) data is due April 28, 2022. selling on global stock markets, including Dalal Street,” said Avinash Gorakshkar of Profitmart. Securities.

4]Q4 results: “In terms of fourth quarter results, the market will react to ICICI Bank results on Monday while Bajaj Finance, HDFC Life, Bajaj Auto, HUL, Ambuja Cement, Axis Bank, Bajaj Finserv, Vedanta, IndusInd Bank, Maruti Suzuki, Ultratech Cement and Wipro will be other key results that are expected this week,” said Santosh Meena of Swastika Investmart.

5]Dollar index: Stock investors should also keep an eye on the Dollar Index. The dollar index jumped to record highs of 101 and any further escalation in the index could lead to more FII selling off Dalal Street. “Historically, FIIs become net sellers on Indian indices when the Dollar Index gains. While the index has hit an all-time high, any further rise in the Dollar Index would mean increased selling pressure from FIIs on Indian stocks,” said Avinash Gorakshkar.

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.