Weekly Market Analysis for May 21-25, 2024
What happened last week?
Nifty increased by 2% last week to close at 22502. Quite a recovery from the week earlier.
All sectors ended in green except FMCG.
At an Industry level - Bearings (+16%), Railway (+12%), Aviation (10%), Defence (10%) and Solar Panel Manufacturing (9%) stocks continued their upward momentum last week.
Most Global Markets also ended in green last week. US Dow Jones crossed the 40000 mark for the first time.
Let us look at some India Specific Developments.
India VIX (Volatility Index) has doubled in the last month from 10 to 20%. June month Options are getting costlier ahead of Election Results. 3 phases of Voting are still left.
The Consumer Price Index (CPI) Inflation Rate eased slightly to 4.83% in April 2024 from 4.85% in March 2024. It was the eighth straight month that Indian inflation remained within the RBI’s tolerance band of 2 percentage points from 4%, suggesting that the central bank might hold its key rate unchanged.
The Wholesale Price Index (WPI) rises to a 13-month high of 1.26%, driven by food, electricity, and fuel costs.
In April 2024, passenger vehicle sales reached 3,35,629 units (record high), a 1.3 per cent growth compared to 3,31,278 vehicles sold in April 2023.
India has cut the windfall tax on petroleum crude to ₹5,700 ($68.34) per metric tonne from Rs 8,400 with effect from May 16.
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 sold ₹10649 Cr and DIIs bought ₹14410 Cr in the cash market last week.
FIIs marginally reduced their short positions in Index Derivatives as prices went up last week. But they continue to hold shorts indicating further selling in the cash market.
FIIs have also reduced their longs in stock derivatives as prices shot up.
FIIs continue to be Bearish.
DIIs are still holding their hedges. Although they are turning buyers around 22000-22300 levels, they are cautious.
Nifty Analysis
Throughout last week, both Price and Max Pain inched upwards indicating bullishness.
Stocks Coverage
Key Upcoming Events
Tuesday, May 21
FED Chair Jerome Powell Speech
Wednesday, May 22
US FED FOMC Minutes
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 use the Search on the top right corner of this page to search for stock-specific updates.
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