INSUBCONTINENT EXCLUSIVE:
broader Nifty50 index added 0.79 per cent
The market logged fourth straight weekly gain.
Q4 earnings and political developments will have a major say in influencing investors and
may have a negative impact on markets
Yields moved up recently after the RBI released minutes of April monetary policy meeting, stating upside risks to inflation, which may come
from MSP increases, crude price rise and resulting fiscal slippage.
Rising oil prices also pose a threat to the fiscal and current account
Oil price direction will also be determined by Opec output cuts and the US decision to reintroduce sanctions on Iran by May 12, Virmani
added.
Let's have a look at the key developments that will steer market in the coming week -Next batch of earningsA host of big-ticket
names are lined up to release their March quarter results in the coming week
Bharti Infratel, LIC Housing Finance and Reliance Infrastructure will declare their results on Monday, while telecom major Bharti Airtel,
ICICI Prudential Life and IDFC Bank will release their numbers on Tuesday
Ultratech Cement and Wipro will announce theirs on Wednesday, while Axis Bank, Biocon and YES Bank will unveil their report cards on
Bandhan Bank, Maruti Suzuki and Reliance Industries are scheduled to announce their numbers on Friday.
Rupee in painThe rupee on Friday sank
32 paise to hit a 13-month low of 66.12 against the dollar on rising crude prices and fiscal deficit worries
It was the lowest closing level of the domestic currency since March 10, 2017, when it had settled at 66.60 against the greenback.
"Indian
rupee fell for a fifth session as RBI minutes revealed that RBI's tone is more hawkish than what markets had previously gauged
FII selling and firm oil adds to pressure on rupee, while US dollar is also not expected to yield much ahead of May's FOMC meet," Anand
James, Chief Market Strategist at Geojit Financial Services said.
Simmering crude pricesLast week, both, Brent and WTI (West Texas
Intermediate), hit their highest levels since November 2014, at $74.75 and $69.56, respectively, buoyed by geopolitical risk and a
tightening market.
For the week, both the benchmarks gained over 1 per cent
However, the prices took a slide when the US President Donald Trump took to Twitter to criticise rising oil prices
direction in the coming week
In a big blow to the ruling BJP party, veteran member and former finance and foreign minister Yashwant Sinha on Saturday quit the party
saying country's democracy is in danger
This apart, opposition parties' move to impeach the Chief Justice of India Dipak Misra is likely to affect investor sentiment.
In addition
to these, investors will take cue from the upcoming state elections in Karnataka
Any change in political equations will affect market mood
What tech charts sayThe Nifty50 index on Friday formed an indecisive 'Doji' candle on the daily charts
A Doji candle indicates that the decline is being bought into, as the Nifty50 got stuck in a range ahead of the expiry week.
"The index
appears to have formed an Inside Bar kind of formation in three sessions, as price action of last two sessions was confined to the range of
bearish candle formed on Wednesday
Unless the Nifty50 emerges out of this 10,594-10,509 range with a breakout on either side, trading shall remain listless," said Mazhar
Mohammad, Chief Strategist for Technical Research Trading Advisory at Chartviewindia.in.
Milan Vaishnav, CMT, MSTA, says, "While Nifty is
still facing resistance at the pattern resistance area on the daily charts, it remains overstretched and it would be no surprise if there
are bouts of corrections at higher levels."
FO expiryTrading could be volatile next week, as traders will roll over positions in the FO
segment from the near month April series to May series
The April FO contracts will expire on Thursday.
FO stands for Futures and Options
Futures and Options represent derivatives of the stock market
These derivatives are the financial instruments deriving their values from underlying assets such as currency, gold, or the stocks of a
Kim shuns dirty bombNorth Korea on Saturday announced it would immediately suspend nuclear and missile tests, scrap its nuclear test site
and instead pursue economic growth and peace, ahead of planned summits with South Korea and the US.
North Korean leader Kim Jong Un is
scheduled to hold talks with South Korean President Moon Jae-in next week and with US President Donald Trump in late May or early June,
The move, hailed by countries across the globe, is likely to boost markets when trading resumes on Monday.
ECB, BoJ policy meetsEuropean
Central Bank (ECB) is scheduled to announce its monetary policy on Thursday
Economists anticipate that ECB steps towards winding down QE will come only in June or later
But ECB chief Mario Draghi will be pressed on what he thinks about the economic wobbles, trade wars and the euro, said a Reuters
report.
Bank of Japan will announce its policy stance on Friday
