As the earnings season draws to a close on Dalal Street, analysts say high volatility may persist in the run up to the expiry of monthly derivatives (futures & options) contracts due on Thursday, May 26. Besides, global cues will remain at centre stage after a week that saw wild swings in the market as investors fretted over aggressive hikes in interest rates, worsening inflation and concerns about receding growth.

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News updates on the Russia-Ukraine war front and the pandemic situation in China will also be tracked closely.

The week that was

Last week, both Sensex and Nifty50 rose around three percent each — their first weekly gain in more than a month.

Barring IT, all of the sectors strengthened, helping Dalal Street endure wild swings in its global peers as investors fretted over aggressive hikes in pandemic-era interest rates and concerns about receding global growth.

The road ahead

One can expect high choppiness to continue on account of the scheduled monthly F&O expiry, according to Ajit Mishra, VP Research at Religare Broking.

Besides, monsoon-related updates will be in focus, along with the performance of global markets, especially the US, China’s COVID updates and news on the Russia-Ukraine front will remain in the spotlight, he said.

"The Nifty50 is trading closer to the upper band of the 15,700-16,400 range, where it has witnessed wild swings. Participants should wait for a decisive close above 16,400 for a change in bias. In case of a breakout, the 16,650-16,800 zone will act as a hurdle," he said.

Here are the key factors and events that are likely to influence Dalal Street in the week beginning May 23:

GLOBAL CUES

DOMESTIC CUES

Earnings

Investors will track the last leg of the earnings season for cues. Here are a few noteworthy financial results due this week:

IPO

Aether Industries' IPO to raise up to Rs 808 crore will open for subscription on May 24. eMudhra's public offer worth up to Rs 413 crore will close on the same day.

FII activity

Institutional money flows will remain on investors' radar, as foreign investors remain net sellers of shares and domestic investors net buyers on Dalal Street.

Last week, foreign institutional investors (FIIs) net sold Indian shares worth Rs 11,401.3 crore and domestic institutional investors (DIIs) made net purchases worth Rs 9,472.9 crore, according to provisional exchange data.

Corporate action