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Q3 earnings, F&O expiry among 8 factors that will steer market this week

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Q3 earnings, F&O expiry among 8 factors that will steer market this week

As the Budget day draws close, markets will likely remain volatile in the holiday-shortened week, mainly on account of the expiry of monthly derivative contracts. Further, analysts expect the second phase of quarterly earnings and global cues to keep market participants on edge.

Here are a host of factors that will decide market action next week. Q3 earningsWith earnings of index heavyweight

out of the way, some major companies, including , , , , , , , and , among others, are slated to announce their third-quarter results this week. The markets on Monday will also react to RIL’s earnings, which disappointed the Street, as well as other index majors and .

Pre-Budget expectationsMarkets will also see some action around stocks and sectors that have turned attractive to investors ahead of the Budget. Most analysts expect the government to focus on infrastructure with increased capex outlay. There are also coul expectations that defense, railways, continue to witness significant allocation in the Budget. In light of this, infra and related stocks, capital goods and cement sectors would continue to remain in the spotlight.

Global CuesKey economic data from the United States — including new home sales, initial jobless claims — is likely to dictate the US market action next week, which investors will closely track. US stocks rallied to close higher on Friday, as the S&P 500 and Dow snapped a three-session losing streak and the Nasdaq rose over 2%. Analysts also attributed the rally to Federal Reserve Governor Christopher Waller’s comment endorsing a smaller 25-basis point rate hike at the Fed’s next meeting, ossmaller t hikes.

FII SellingForeign investors have sold shares worth over Rs 15,000 crore so far this year, with IT and financials making a big chunk of it. The benchmark indices have come under pressure this month, and gains were capped on sustained selling by the FIIs. Coming week, market participants will closely track the FII behaviour.

Monthly ExpiryMarkets may remain volatile in the coming week with the scheduled monthly expiry of January month derivatives contracts. “We recommend continuing with a stock-specific trading approach and focusing on overnight ther risk management. the prevailing underperformance of the broader indices,” said Ajit Mishra, VP – Technical Research, Broking. T+1 cycle The T+1 settlement cycle for all the securities will come into effect from January 27. Earlier, the settlement of trades would be two business days after the placed order. Last year, Sebi proposed a gradual movement to the T+1 cycle, and this Friday will complete the shift to the new mechanism. All the stocks, including those that trade in derivatives, will shift to the new settlement cycle.

Adani FPO Investors will keep a close watch on Adani Enterprises’ Rs 20,000 crore follow-on public offer (FPO), which will open on January 27 and will be available for subscription till January 31. The company has fixed the price band at Rs 3,112 to Rs 3,276 apiece. Retail investors would get a discount of Rs 64 per equity share on the price band.

was the best Nifty performer in 2022, as it more than doubled investors’ wealth.

TechnicalsNifty has formed a Doji candle on the weekly frame, and a hold of 18,018 is crucial for a decisive move in the next week. Nifty is placed within a broad high-low range of 18,200 to 17,900 levels, and the specific direction is missing in the market, said analysts.

“The index has to hold above 18,018 zones for an up move towards 18,181 and 18,250 zones, whereas supports are placed at 17,950 and 17,850 levels,” said Chandan

of . Indicators like the RSI and MACD are weakening and trading sideways, indicating that the current weakness will persist unless there is a sharp move on either side. On the other hand, options data suggests a trading range between 17,800 to 18,350 levelsim while an Trading range between 17,900 to 18,200 zones.

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