Dalal Street Week Ahead | LIC listing, earnings among 10 key factors that will keep traders busy

The benchmark share lost 4% for the second week in a row as Indian markets remained bearish. The investors were worried about rising inflation, rate hikes by the global central bank, China's actions and the rupee's weakness.

During the last week, the BSE Sensex lost 2,061.96 points to close at 52,793.62, while the Nifty50 lost 622.05 points to end at 15,782.20 levels. In the month of May, the Nifty lost more than 7 percent.

The sectoral indices were all in the red with BSE Metal and Power falling 13 percent each. The BSE Telecom index fell by 6.7 percent. The BSE Mid-cap index lost 5.6 percent, the Small-cap index shed 6.5 percent and the Large-cap index declined 4%.

Market participants will be watching the performance of global stocks, the Russia-Ukraine war updates and China's carbon dioxide situation for clues. LIC, the largest insurer in the country, would also be on the radar. WPI Inflation numbers scheduled for May 17 would be looked at by experts.

After five weeks of decline, the markets have turned oversold but there is no sign of a reversal. The bearish sentiment has been strengthened by the breakdown of the banking pack. The Nifty is close to the March low of 15,671.45 and a breakdown would push the index to the 15,400 zone. Religare broking.

Since we are seeing rotation selling across sectors, traders should align their positions accordingly. He said that investors may consider nibbling into IT, FMCG and auto pack.

There are a number of factors that will keep traders busy next week.

There is a LIC listing.

All eyes are on the listing of Life Insurance Corporation.

The schedule for LIC's debut on the BSE and NSE was published in the prospectus.

The issue received bids worth over 43 million dollars after it opened for subscription.

As per the data available on exchanges, the offer was subscribed 2.95 times, as investors put in bids for 47.83 million equity shares against the IPO size of 16.20 million shares.

The value of shares subscribed for by the policyholders was more than the allotted quota, as they bid 6.12 times the allotted quota.

Thanks to the discounts they were offered, retail investors and LIC policyholders were the most enthusiastic for the offering.

The portion that was reserved for them was fully taken up days before the offering ended. The anchor portion of the IPO drew in funds from Norway and Singapore and other foreign investors only picked up pace on the last day.

There are two things: earnings and earnings

More than 400 companies are going to announce their March quarter results next week, and the earnings will remain in focus.

Some of the big names to declare earnings next week are DLF, Indian Oil Corporation, ITC, Dr. Reddy's Laboratories, InterGlobe Aviation, Godrej Consumer Products, and NTPC.

Among other companies, Century Plyboards, Glaxosmithkline Pharmaceuticals, Multi Commodity Exchange of India, Raymond, Shankara Building Products, Uttam Sugar Mills, V.I.P.Industries, and GM.

I am selling.

In the last eight months, foreign institutional investors have sold equities worth of Rs 19,967.57 crore while domestic institutional investors have bought equities worth of Rs 18,202.10 crore.

In the month of May, DIIs purchased equities worth Rs 26,735.36 crore, while FIIs sold equities worth Rs 32,701.03.

Russia and Ukraine are fighting a war.

Russia-Ukraine war situation will remain on investor's radar.

Video from the Ukrainian military showed that Ukrainian forces destroyed parts of a Russian armored column as it tried to cross a river in the Donbas region.

On the other hand, Ukrainian President Volodymyr Zelenskiy said that Russia's withdrawal from Ukraine should be the starting point for any talks with Putin.

Since March 29, peace talks between Russia and Ukraine have not been held.

There are IPOs.

Three more IPOs will open for subscription next week, keeping the primary market in focus.

Paradeep Phosphates IPO will open on May 17 and close on May 19 The bids for the anchor investor will open on May 13.

The initial public offering price was set at Rs 39-42 a share. The company is planning to raise around Rs 1,502 crore at the upper price band. The company will be listed on May 27.

An offer for sale of up to 118.51 million shares by its existing shareholders and promoter is part of the IPO.

Ethos will close on 20 May. The anchor book will open in May. The price band for the IPO is Rs 832-832 a share. The shares will be listed on 30 May.

The IPO consists of a fresh issue and an offer for sale of up to 1.10 million shares by shareholders.

The public offer of eMudhra, the largest licensed certifying authority for digital signatures in India, will open for subscription on May 20 and close on May 24. The company's initial public offering will be priced at Rs 243-252 a share, which will give it a market value of Rs 2,000 crore.

The IPO consists of a fresh issue of Rs 161 cr and an offer for sale of up to 9.84 million shares by its existing shareholders.

The Rupee is 6.

The domestic currency touched a new low last week.

Jateen Trivedi, Senior Research Analyst at LKP Securities, said that the rupee closed very weak on a weekly basis as rate hike with rapid speed played negatively on overall sentiment.

He said that the rupee will be seen taking weakness on any rise in market prices.

The Indian currency market will be closed on Monday due to Buddha Pournima.

The dollar was set for a sixth straight week of gains on Friday as a rally in the stock market gave investors a reason to be cautious, but it was still down on the day.

There is a technical view.

The Nifty index opened positive and moved in the upward direction for the first half of the session and crossed its previous day's high. It slipped to 15740 in the last part of the day.

It formed a Bearish candle on the daily and weekly frames and has been making lower highs.

If it bounces below 16000 zones, it could be sold for the downside move towards 15650 and 15500 zones, whereas hurdles are placed at 16161 and 16350 zones.

There are 8 F&O Cues.

There is a wider trading range between 15500 and 16300 zones.

The India VIX went up from 24.26 to 23.05. The bear's grip has been smoothened by the slightly cooled volatility. The market will remain uncertain until the CBO cools off.

The maximum call open interest is 17000 and the maximum put open interest is 16000. Marginal Call writing is seen at 16300 strike while Put writing is seen at 16000 strike.

For traders, 15900 would be a key resistance level and below it, the index could slip to 15000. The immediate trend reversal level for the bulls would be 15900 and we could see a strong rally up to 16300.

Corporate action.

Key corporate actions are taking place this week.

There are global data points.

Key global data points to watch out for next week.

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