GDP data, auto sales, earnings, F&O expiry to drive markets this week
The markets are expected to be rangebound or remain volatile ahead of the May F&O series expiry this week and GDP data due to be released on Thursday
Mumbai: The markets are expected to be rangebound or remain volatile ahead of the future and options (F&O) expiry this week. Key factors that are likely to drive markets this week are macro data, May auto sales data and March 2018 quarter.
In the last week of March-quarter earnings, Aurobindo Pharma Ltd, Bank of India, Larsen and Toubro Ltd, Oil India Ltd, Oil and Natural Gas Corp. Ltd, and Coal India Ltd are among companies which will report their Q4 results.
Jimeet Modi, founder and CEO of Samco Securities & StockNote, said, “Markets can expect some amount of volatility on account of expiry and the declaration of results by a couple of companies such as NTPC, Oil India, Aurobindo Pharma among others. Key sectors to watch out for would be oil and gas, IT and cement. With the rising uncertainty on the global front, the markets are not in a hurry to begin their northbound journey.”
As F&O for May series will expire on Thursday and traders roll over positions to June 2018 series, markets tend to become volatile.
“The short term trend of Nifty is positive, but current upside bounce is unlikely to hold for a long. The key weekly resistance of 10,750 levels is expected to weigh high on the market in coming weeks. If Nifty moves up for early part of next week, then it has all the possibility of showing higher level sell off during mid to later part of next week, from near 10,750 levels,” said Nagaraj Shetti, technical research analyst, HDFC Securities.
Auto stocks will be in focus this week as they will declare their monthly sales data for May. In April, domestic passenger car sales rose by 17.15% to 98,740 units from 84,283 units in the same month last year, according to the figures released by the Society of Indian Automobile Manufacturers (Siam). Motorcycle sales during the month was up by 8.31% 501,592 units, against 463,091 units a year ago.
Among macros, gross domestic product (GDP) for the period of January-March is expected to be released on Thursday this week. Rating agency Icra Ltd expects GDP in the March quarter to be at 7.4% up from 7.2% in previous quarter driven by good rabi crop harvest.
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