- Upcoming Reports: Around 900 companies are set to release their quarterly earnings, including key players such as Oil and Natural Gas Corporation, Grasim Industries, Power Grid Corporation of India, Sun Pharmaceutical, ITC, Hindalco Industries, NTPC, and Divis Laboratories. The results from these companies will provide critical insights into the health of various sectors.
- Earnings Impact: The earnings announced so far have largely met expectations, which supports market sentiment. Continued positive earnings reports could further bolster the market.
- Election Phases: The next two phases of voting on May 20 and May 25 will be crucial. Voter turnout and any emerging trends could impact market sentiment, as political stability is a key factor for investors.
- Election Outcome: Market participants are keenly awaiting the final election results due on June 4. This outcome will likely influence long-term investment strategies.
3. Domestic Economic Data
- PMI Data: The HSBC Manufacturing and Services PMI data for May will be released on May 23. These indicators will provide insights into the economic health and potential future performance.
- Foreign Exchange Reserves: The data for the week ended May 17 will be released on May 24, offering a glimpse into the country's economic stability.
4. FOMC Minutes and Fed Chair Speech
- Fed Chair Speech: Jerome Powell’s speech on May 21 will be closely watched for hints about future monetary policy.
- FOMC Minutes: The minutes from the recent Federal Open Market Committee meeting, to be released on May 22, will provide further clarity on the Fed's stance on interest rates and economic outlook.
- US Data: Key data including jobs reports, new home sales, and durable goods orders will be monitored.
- International Indicators: PMI data from the Eurozone and Japan, along with Japan's inflation figures for April, will also be significant.
- FII Outflows: Foreign Institutional Investors have been net sellers, likely due to election uncertainties. This trend may continue until there is clarity on the election results.
- DII Inflows: Domestic Institutional Investors have been net buyers, supporting the market despite FII outflows.
- Awfis Space Solutions IPO: Opening on May 22, this IPO will attract significant attention.
- SME IPOs: Multiple IPOs in the SME segment will also be watched closely.
- Key Levels: The Nifty 50’s position at 22,500 is a critical level. A break above this could lead to record highs, while a fall below might drag the index to 22,400-22,300.
- Market Volatility: The India VIX has been rising, indicating increased market volatility which needs to be managed carefully by investors.
Open Interest (OI) Data Analysis
- Highest OI at 23000: With 2,23,281 contracts, this level serves as a significant resistance point.
- Maximum OI Writing at 23000: The substantial call writing indicates strong resistance here.
- Highest OI at 21500: With 2,38,258 contracts, this level is a major support zone.
- Maximum OI Writing at 22500: Significant put writing at this strike indicates strong support here.
Resistance and Support Levels Based on OI Data
- Primary Resistance: 23000 (Highest Call OI, Maximum OI Writing)
- Secondary Resistance: 22500 (Significant Call OI and Put Writing)
- Primary Support: 21500 (Highest Put OI)
- Secondary Support: 22000 (Significant Put OI)
- Short Position at 23000: Entry: 23000 Target: 22500 Stop Loss: 23150
- Long Position at 21500: Entry: 21500 Target: 22000 Stop Loss: 21350
- Long Position at 22000: Entry: 22000 Target: 22500 Stop Loss: 21850
- Short Position at 22500: Entry: 22500 Target: 22000 Stop Loss: 22650
The market is poised for a consolidative phase with a positive bias, influenced by corporate earnings, election progress, economic data, and global cues from the Fed. The open interest data suggests key resistance at 23000 and support at 21500. Investors should monitor these levels closely and adjust their strategies accordingly to navigate potential market volatility.
This report is for informational purposes only and does not constitute financial advice. Investing in stocks and financial instruments involves risk, and you should conduct your own research or consult with a financial advisor before making investment decisions. The author and the publisher are not responsible for any losses that may occur from the use of this information. Always trade within your risk tolerance and investment strategy.
