Since the April series is over, the markets should become erratic

The five trading sessions that occurred last week were unlike any other because the markets have a life of their own. I really find it amazing how marketplaces change color almost every day.

 

Markets began on Monday and Tuesday with a gap to the upside and ended higher, but there was very little movement between the starting and closing prices.

In practice, intraday volatility dropped significantly. It was a quiet Wednesday. The expiration day for April futures was Thursday. It started off peacefully, just like every other day of the previous week, but in the last hour of the day, there was a sudden and dramatic increase in price. On a net basis, the NIFTY increased by 168 points on Thursday and by 265 points from the day’s low.

On Friday, however, the situation was quite different. The markets closed the day down, losing 151 points overall and 235 points from the day’s peak to the close.

BSESENSEX gained on four of the five trading sessions and lost on one at the conclusion of five separate days of the week. NIFTY gained 272.95 points, or 1.23%, to end at 22,419.95 points, while BSESENSEX gained 641.83 points, or 0.88 percent, to conclude at 73,790.16 points.

The BSE100, BSE200, and BSE500 recorded gains of 1.53 percent, 1.85 percent, and 2.10 percent, respectively, on the larger markets. BSESMALLCAP had a gain of 3.97 percent, while BSEMIDCAP saw a gain of 3.96 percent.

The India Rupee closed at 83.34 to the US Dollar, up 13 paise, or 0.0.16 percent. Three of the five sessions saw gains for Dow Jones, while two saw losses. The Dow closed the week at 39,239.66 points, up 253.26 points, or 0.67 percent.

Investors reacted favorably to Vodafone Idea Limited’s 18,000 crore follow-on offer, which was oversubscribed. There were 19.31 subscriptions for the QIB section, 4.54 subscriptions for the HNI portion, and 1.01 subscriptions for the retail portion.

The issue received 6.56 subscriptions overall. On Thursday, April 25, shares issued under the FPO became public. At Wednesday’s end the day before, the value was Rs 13.09. On the day of listing, the closing price was Rs 13.89, but the discovered price was Rs 12. The share increased by 26.27 percent, or Rs 2.89, from the issue price. On Friday, the share increased slightly and ended the day at Rs 14.01, up 3.01 or 27.36%.

Indegene Limited is on the road, bringing its new issuance of Rs 760 crore and its offer to sell 3,62,91,497 shares in accordance with the DRHP to the capital markets. A newspaper advertising would be used to publicize the price range, the opening and closing dates of the issuance, and the amount of the OFS. Mumbai will host the roadshow on Monday, April 29.

Results season has begun, and of the few that have announced results so far, not many have produced very impressive outcomes. One is waiting for things to happen in order to follow up with leads and have investors look at available market prospects.

In the general elections, there have been two completed of the seven voting rounds. On May 7, there will be a third round. On June 4, the results will be announced.

On Thursday, April 25, April futures ended on a very upbeat and optimistic tone. The NIFTY April series ended at 21,570.35 points, up 243.45 points, or 1.09 percent.

To put things in perspective, the gains were at 167 points on expiration day, Thursday. On the first day of the May series, NIFTY had a 151-point loss. Whatever you want to call it, on Thursday the Bulls won the series and the battle, and on Friday they lost it.

Next week, on Wednesday, May 1, there will be a trade holiday in the markets. A holiday would also be observed in the majority of international markets. The week would, however, be split into two equal halves, each lasting two days, which would increase market volatility.

The previous high peaks of 75,124 points and 22,775 points would be formidable resistances. The lows reached last week at 71,816 and 21,777 points would serve as solid supports on the support side. Markets may decline to 71,100 and 21,550 points, respectively, if these are broken.

Due to the mid-week vacation, the trading strategy for the next week would be to trade very cautiously on the long side. The general rule would be to buy on any significant dips and sell on any significant rises. Markets are still attempting to carve out a cozy trading space for themselves.