May 20th 2024.
In the upcoming week, analysts predict that the equity market will be guided by a combination of factors, including the last batch of quarterly earnings, global trends, and trading activity of foreign investors. However, amidst the ongoing election season, volatility is expected to persist as investors approach with caution.
On Monday, the markets will remain closed in Mumbai due to the fifth phase of the Lok Sabha elections. This provides a much-needed break for investors to assess the current market situation. According to Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, the end of Q4 earnings could bring some relief in this uncertain market, especially if there are positive earnings reports.
In addition to quarterly earnings, the market movement will also be influenced by US Fed Chair Jerome Powell's speech on Monday. This will be an important event to watch as it could significantly impact market sentiments. Along with this, upcoming economic data releases from Japan and the US, as well as movements in the global currency market, will be key factors to consider.
This week, several companies will announce their quarterly earnings, including ONGC, SAIL, BHEL, JK Tyre, One97 Communications, Power Grid, InterGlobe Aviation, ITC, and NTPC. According to Arvinder Singh Nanda, Senior Vice President at Master Capital Services Ltd, the market outlook will also be influenced by major domestic and global economic data, such as India's PMI manufacturing and service data, UK inflation data, US initial jobless claims, and S&P global services data.
Investors will also keep a close eye on the rupee-dollar trend and global oil benchmark Brent crude. Despite the expected increase in volatility over the next few weeks, Prashanth Tapse, Senior VP at Mehta Equities Ltd, believes that selective buying in key frontline, mid, and smallcap stocks will continue.
Looking back at last week, the BSE benchmark and Nifty both saw an impressive increase, climbing by 1.84% and 2% respectively. However, amidst ongoing uncertainties surrounding election results and quarterly earnings, Vinod Nair, Head of Research at Geojit Financial Services, predicts that volatility will continue in the near term.
To ensure preparedness for handling major disruptions, the National Stock Exchange and BSE conducted a special trading session in the equity and equity derivative segments on May 18. This reflects the importance of being prepared for potential market fluctuations.
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