Stock market preview Monday, April 29

In the pre-market session on Monday, April 29, Gift Nifty futures indicated a likely gap-up opening of over 50 points on the NSE benchmark index. This positivity can be attributed to the strong Q4 earnings reported by companies so far. According to the BS Research Bureau, 178 companies reported a sales growth rate of 13.2% Y-o-Y, with aggregate revenue reaching Rs 9.1 trillion, the highest in the last four quarters. ICICI Bank's positive Q4 results are also expected to impact the market.

Companies announcing Q4 earnings

Several companies are scheduled to announce their March quarter earnings on Monday, including Can Fin Homes, Gillette India, Tata Chemicals, and UltraTech Cement. Investors will be keenly watching these results to gauge the overall performance of the corporate sector in India.

Technical outlook on the market

Vaishali Parekh from Prabhudas Lilladher expects the Nifty and Sensex to trade in a range of 22,000 – 22,800 and 72,500 – 75,000, respectively, with a positive bias as long as the Nifty sustains above its 50-DEMA level. Rajesh Bhosale from Angel One recommends a 'buy on dip' strategy despite Friday's setback, citing immediate support levels for the Nifty around 22,300.

Foreign Institutional Investors (FIIs) flows

FIIs have been net sellers of stocks worth Rs 36,933 crore in the current month, the highest since January 2023. The rise in US bond yields has been a trigger for this selling, with the latest core CPI inflation in the US coming in higher than expected. This could lead to more outflows in both equity and debt markets, impacting the overall market sentiment.

Domestic Institutional Investors (DIIs) activity

On the other hand, DIIs have been net buyers of shares worth Rs 42,065 crore so far in April 2024. This shows a contrasting trend compared to FIIs and underscores the importance of domestic institutional participation in the market.

As the holiday-shortened trading week kicks off, investors will be closely monitoring global cues, Q4 earnings, and FII flows to gauge market direction. The upcoming US Federal Reserve policy meeting on May 01 adds to the uncertainty, making it crucial for investors to stay alert and proactive in their investment decisions.