Over a dozen triggers are likely to impact stock markets movement next week - here is a list!

The Indian stocks markets ended the trading week on Friday on a negative note with BSE Sensex ending at 57,124.31, down by 190 or 0.33 per cent. Meanwhile, the broader market Nifty50 close at 17,003, almost 68 points or 0.40 per cent on Friday. The banking stocks also took a severe beating as the Nifty Bank index closed the last trading session at 34,857, correcting by 334 points or almost 1 per cent. 

The Nifty Midcap 100 index also settled with losses at 29,612.85, 314 points lower than the Thursday closing price. 

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The Foreign Institutional Investors (FIIs) sold Indian equities worth Rs 715 cr while the Domestic Institutional Investors (DIIs) sold equities worth Rs 43 cr in the domestic markets. 

What will likely be the situation when the markets reopen on Monday and what will be the top triggers for the next week? This is what investors must watch out for, during the next week.  

Futures and Options (F&O) expiry and domestic cues will dominate next week amid the absence of global trigger and Foreign Institutional Investors’ (FIIs) flows, Santosh Meena, Head of Research at Swastika Investmart Ltd said.

Technically, Nifty is facing some resistance at 20-DMA after a decent pullback however 16900-16800 is a strong demand zone, Meena said adding that any weakness could be expected only below this zone. On the upside, 20-DMA of 17,150 is an immediate resistance while 17,250/17,400 will be the next resistance levels.

The overall view is slightly bullish till Nifty trades above 16800 however Nifty has multiple resistances that may cause volatility. Bank Nifty is respecting support of the 34000 level however structure is still weak. On the upside, 35300 is an immediate hurdle while 35700-36000 is a critical resistance zone.

There is still a lack of clarity in terms of direction Indian equity market even though there was a decent recovery after a sharp correction, Meena said.

“We have a lack of global cues amid Christmas and New Year holidays and FIIs' flows are also on the tepid side where December month F&O expiry and domestic cues will dominate the next week,” he said.

“If we look at the data then FIIs' volumes have come down significantly however they are still on the sell-side where they sold worth Rs 6600 cr last week while Domestic Institutional Investors (DIIs) bought equities worth Rs 6900 cr in the cash market,” Meena said.

On the domestic front, rising covid cases and various restrictions by the state governments are a key concern for the market, he further said.

 The derivatives data suggests that FIIs' long exposure in the index future stands at 66 per cent while the put-call ratio is sitting at 1 level which is neutral for the market. 17000 put strike price has significant OI built up which is immediate and important support level, Meena said. Below this, the market may come under pressure, he added. On the upside, 17200 strike call option has significant OI built up then 17500 will be the next important level in terms of OI.

Top Triggers:

1. Monday – 27 December – Listing of HP Adhesive IPO stock. The issue price was Rs 274. 
2. Go Fashion: One month lock-in period for anchor investors to end on this day.  
3. GE Shipping: Board meeting on this day to consider buyback. 
4. Som Distilleries: Board meeting to decide price of shares for the rights issue. 
5. Vedanta: Board meeting to for Rs 1000 cr NCD issue. 
6. Inox Wind: Company to consider fund raising.  
7. The 20 per cent rebate on circle rate to also end on this day 
8. Global Holidays: UK, Hongkong, Australia, Canada, New Zealand, South Africa markets to remain closed. 
9. Tuesday - 28th December – Listing of Supriya Lifesciences IPO stock. The issue Price was Rs 274. 
10. Mazagon Dock: Board meeting on interim dividend.  
11. Ajanta Pharma – Board meeting to consider share buyback. 
12. Greenlam Industries – board meeting for fund raise.  
13. Global Holidays: markets to remain closed on UK, Australia, Canada, New Zealand. 
14. Wednesday - 29 December – AGM of MMTC  
15. Thursday – 30 December – Expiry of December series.  
16. AGM of Dish TV. 
17. EGM of Indigo – EGM called to remove 'Transfer Restriction Articles' from Articles of Association. 
18. Friday - 31 December – Starting of January series from this day. 
19. 8 new shares to be added in Futures & Options (F&O) segment viz Balram Chini, GNFC, Hindustan Copper, NBCC, Rain Industries, Supreme Industries, Tata Communication, IDFC 
20. Sterling & Wilson Solar’s open offer to start. It will end on 13 January. Offer Price is Rs 375. 
21. It is also the last day to file income tax returns for FY21. Also, Andhra Sugar’s stock face value to come down to Rs 2 from Rs 10.