After a 4-day hiatus, stock traders should brace for a selloff on Monday
SGX Nifty, an early indicator of how Nifty might open when the market begins morning trading, is trading at 17,325.20, down about 150 points from Nifty’s last close at 17,475.65. Indexes in the United States, including the Nasdaq 100 and S&P 500, continued to fall amid the selloff.
If the market opens lower and closes in the red on Monday, it will be the fourth consecutive decline in as many sessions. However, as we have seen many times over the past few months, a long can start at low levels, capping the loss of indices.
“Nifty is unlikely to fall below 17,300. Bottom buying is likely to emerge, supporting the market. Financials have the potential to support the market,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Banking and IT stocks could buzz during the session as the market reacts to earnings from two big companies, HDFC Bank and Infosys. Both reported a mixed bag of numbers and the market reaction will be interesting to see.
Investors will be watching the March quarter results, the Russian-Ukrainian issue, rising inflation data and crude prices. Crude oil is still trading above $100 a barrel. The economy and profit margins of companies that use it as a raw material for their products and services are the most threatened by its constantly high price.
“The market will be watching price developments closely throughout the week. Any further price increases will be detrimental. The market will turn its attention to the fourth quarter earnings season, which will be led by the IT sectors. and banking, and we expect a strong quarter on the back of a rebound in loan growth and a stronger balance sheet,” said Mohit Nigam, Head – PMS, Hem Securities.
Aamar Deo Singh, Head Advisory, Angel One, said the market will continue to consolidate this week, with a strong fight between bulls and bears. “Current April series open interest (OI) data for Nifty50 indicates a short accumulation, and signals from technical indicators suggest that Nifty is likely to trade between 17,250 and 17,750,” he said. he declares.
“A few technical indicators such as the moving averages and the ADX, a trend-determining indicator, point to sideways play next week. Only a breach above or below the mentioned range could trigger a sharp move in either sense.
For Bank Nifty, he said 36,600-37,800 is the range to watch this week.