Weekly Market Analysis for May 27-31, 2024
What happened last week?
Nifty was up by 2.19% last week closing at 22957. Nifty witnessed a breakout from the previous high of 22800 and also breached the 23000 mark briefly last week.
All sectors were up last week. Metals, Auto and Realty continued their good run from last week.
At an Industry level, Defence (+10%), Railways (+6.4%), Tyres(+4%) and Bearings(+3.5%) stocks continued their good run.
India outperformed the global markets last week. The US stock market traded lower as minutes from the Federal Reserve’s May meeting indicated concerns over persistent inflation. Fed also suggested interest rates may not be cut soon.
Let us look at India-Specific developments.
Investor sentiment received a boost after the Reserve Bank of India approved a massive, all-time high surplus transfer of Rs. 2,10,874 crores for FY24, boosting government revenues and aiding the fiscal deficit target.
The HSBC India Composite flash PMI edged up to 61.7 in May 2024 from 61.5 in the previous month. It indicated the third-strongest rate of expansion in nearly 14 years, supported by a sharp increase in the services sector. New export orders expanded for both the manufacturing and services sectors.
Q4 FY24 Results season is underway. Here is the list of stocks that posted good results last week.
Let us now dive deeper into FII DII Data.
FII DII Positions Analysis
FIIs bought ₹1165 Cr and DIIs bought ₹6977 Cr in the cash market last week.
FIIs significantly reduced their short positions on Index Derivatives last week as highlighted in the graph below.
FIIs became less bearish last week and turned net buyers in the cash market. A huge shift in FII Sentiment. They have built significant longs in Index Futures as well.
DIIs continue to remain bullish.
Nifty Analysis
Throughout last week, both Price and Max Pain inched upwards indicating bullishness. Nifty has been in Bulls Control since May 16 as highlighted below.
Stocks Coverage
Key Upcoming Events
Wednesday (May 29):
- India Money Supply Data
Thursday (May 30):
- Euro Area Economic Sentiment Indicator
- US Initial Jobless Claims
- US GDP Growth Rate
Friday (May 31):
- India's GDP Annual Growth Rate
- India Foreign Exchange Reserves Data
Key Stock Announcements Last week
Please check Dalal Street Breakfast (Daily Pre-Market Report) for all stock-related updates from the past week. You can also search for stock-specific updates in the top right corner of this page.
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