Macro data, May auto sales, global cues and FII flows among other key triggers to dictate market trend next week, say analysts

The domestic markets next week will mostly be guided by macroeconomic data announcements, besides, global trends amid ongoing concerns over high inflation, several analysts said. They also added that the foreign investors, a key driver for the markets, will also be tracked for cues.

Macro data on Indian GDP growth for the fourth quarter of FY22 is eagerly awaited, Yesha Shah, Head of Equity Research, Samco Securities said. While the manufacturing PMI figures for China and the consumer confidence index for the USA will impact global markets next week, she added.

According to the market analyst, “Due to commodity price increases, a fall in wheat yields, and pressure last quarter on contact-intensive services, GDP growth is largely predicted to be lower than in the previous quarter.”

Shah stated that the overall market’s sentiments may worsen if growth falls short of predictions,

She further added that the monthly sales of the auto companies will also be in the limelight apart from the GDP print. Given the series of data releases, the coming week will undoubtedly be eventful, and investors are recommended to exercise caution in their trading decisions, the analyst noted.

In the last batch of earnings, companies like Aurobindo Pharma, Jindal Steel and Sun Pharma will announce their numbers.

"This week marks the beginning of the new month also and participants will be closely eyeing important high-frequency data like auto sales, manufacturing and services PMI data.

"Before that, GDP data, which is scheduled on May 31, will be in focus. Apart from these, updates on monsoon progress will also remain on radar," said Ajit Mishra, VP - Research, Religare Broking Ltd.

"Amid all this, movement of dollar index and crude oil prices will continue to have an impact on market volatility. FIIs are still in selling mode where it will be interesting to see whether they start some buying in the Indian market amid improved sentiments," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Last week, the Sensex jumped 558.27 points or 1.02 per cent and the Nifty gained 86.30 points or 0.53 per cent.

On the technical front, the Nifty index continues to remain in oversold zones in short term which indicates a mild reversal from here is possible. Major developed and emerging market indexes are also indicating near-term bottom formations, the analyst at Samco Securities said.

Traders should maintain a bullish bias with a hard stop loss below 15,700 levels and a convincing break above 16,400 can result in a retest of the 16,800-16,900 levels on the upside, she added.

With PTI Inputs