Dalal Street Week Ahead: Focus on India & US Inflation, ECB Financial Stability Review

Dalal Street

The upcoming week on Dalal Street is poised for consolidation amid the Lok Sabha elections and scrutiny of US and India inflation data. Investors will closely monitor corporate earnings, primary market activities, crude oil prices, and FII/DII data for market cues.

Key Highlights:

Corporate Earnings: Over 200 companies, including Zomato, Bharti Airtel, and Power Finance Corporation, will announce their results. Investors await insights into the financial performance and outlook of these companies.

Primary Market Action: Go Digit General Insurance’s IPO will open for subscription, while Aadhar Housing Finance Limited and TBO Tek Limited are set to list on the bourses. Several SMEs, including Rulka Electricals Limited and Quest Laboratories Limited, will also open for subscription.

Crude Oil Prices: Brent crude prices surged to $82.79 per barrel due to declining US crude stockpiles and expectations of a US Federal Reserve interest rate cut. This optimism may impact energy demand and influence oil prices.

FII/DII Data: Heavy FII selling and concerns over the election outcome have pressured markets. Investors will analyze FII and DII trading activities for market sentiment.

Inflation Data: The street will focus on India’s Consumer Price Index (CPI) numbers and US CPI numbers for April. The Reserve Bank of India (RBI) may adopt a wait-and-watch approach until inflation stabilizes within the targeted range.

Global Cues: The European Central Bank (ECB) will conduct its financial stability review, and Japan will announce preliminary estimates for Q1 24 GDP, contributing to global market sentiments.

Technical View: The Nifty 50 may see a recovery, but the overall trend favors bears unless it surpasses key resistance levels. Traders are advised to monitor support and resistance levels closely.

F&O Cues: Options data indicates key resistance at 22,500 levels for the Nifty 50, with significant call writing at 22,800 strikes. Volatility remains high, impacting trading strategies.

Corporate Action: Companies like Godrej Consumer Products and Hindustan Zinc will set record dates for interim dividends, while Tata Consultancy Services will finalize its dividend distribution. Solara Active Pharma will undertake a rights issue of equity shares.

This summary provides insights into market trends and events for informational purposes only. Investors are advised to conduct thorough research and consult financial experts before making investment decisions.

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