Ahead of the market week, ten main factors will keep traders engaged
The market continued to experience a huge amount of pressure in the third week as well that culminated on May 22. The BSE Sensex and Nifty50 dropped by 1 percent each.
The brewing tension between China and USA, absence of measures that could work towards boosting of demands and NPA pressure on banking and extensions after the extended moratorium are some factors among many that lead to the downfall of market.
Here are ten factors that traders will keep an eye on in the upcoming week.
Easing of lockdown
As the end of the fourth lockdown comes closer, the market will work towards reopening of the economy. With the easing off of some restrictions and resuming of essential services, it is expected there will be some more respite in the month of June as far as reopening of other industries is concerned.
The increase in the number of COVID-19 cases
With the number of cases in India crossing the 1 lakh mark, a major factor would be nearing the peak of cases reported in the upcoming week.
Trade tension between USA and China
The brewing trade conflict between USA and China may severly effect the global economic growth according to experts.
US President Donald Trump’s statements of recent also raise speculations over the implementation of the phase one deal between the countries signed in January 2020.
Over 100 companies will be submitting a report on their quarter earnings for the month of March. These include HDFC, Sun Pharma, Lupin, Dabur India etc among others.
FII seemed unsure about India in comparison to other developed economies which attracted flow in their tumultuous assets with huge liquidity stimulus packages. The 20 lakh crore financial package by Government also failed to impress FII.
Crude and Rupee
The prices of oil continued to run its course into the fourth week following the easing of restrictions in the lockdown. Supply cutbacks and drop in shale oil production in the US has also been witnessed.
The Indian rupee weakened by around 40 paise closing at 75.95 against the US dollar due to the low amount of measures taken by RBI in favour of growth.
The Nifty50 dropped by 67 points on May 22 and lost 1 percent in the week. The Bank Nifty fell by 8 percent raising major concerns over Nifty50. A rebound in the coming weeks is expected after the overall trend managing to remain in favour of bears.
F and O expiry
The May series derivative contracts will end and traders will roll over their positions to next month. The options data points towards the maximum Put Base being placed at 9000 following a strike of 8800 strikes.
Corporate action and macro data
Infosys is supposed to trade ex-dividend of Rs. 9.50 per share starting May 29.