Bull vs Bear: Following positive global cues, Dalal Street bulls reacted strongly against the bears on Friday, leading to a rally in the Indian stock market. On Friday, the Nifty was up by 456.7 points or 2.89 per cent at the level of 16,266. Volumes on the NSE were slightly below the recent average. Among sectors, realty, metal, capital goods and healthcare index were the biggest gainers. The forward decline ratio is also increasingly positive.
speaking on indian Share MarketSonam Srivastava, Founder, Wright Research, said, “This week saw an astonishing rally, but hardly anyone is sure that this rally will last given the doom and gloom of inflation watchers and central bankers. Auto and FMCG Has led the pack. Weeks, and metals have also corrected sharply; nevertheless, the rise on the defensive and commodities is a classic bear market move. As a result, the next few weeks will be weeks of caution and risk management.”
Avinash Gorakshakar, Head of Research, Profitmart Securities, advises the bulls and bears of the Indian stock market to be cautious about the triggers that could affect the markets next week, saying, “Till this sharp rise is seen as a trend reversal or market bottom.” Should not be taken till profit is registered. Market closed above 16,000 level for at least two sessions on a stable and at least two sessions on Friday. Market investors will be informed of US Fed meeting on Wednesday, US first quarter GDP data, Advised to be cautious about rupee vs dollar movement, dollar index, economic activity in China, quarterly results, etc.”
Here we list down the top 5 factors that could affect the secondary market next week:
1]US First Quarter GDP Data: The US Gross Domestic Product (GDP) figures for the first quarter are expected on Thursday, May 26, 2022. Avinash Gorakshakar said, “If US GDP data turns out to be lower than expected then it could trigger a sharp sell-off in global markets including India. However, in case of improvement in US GDP data, bulls may further increase their buying spree “
2]US Fed Meeting: The officials of the Central Bank of the United States of America are going to meet on Wednesday next week. Though they have already announced that the interest rate will be cut by 50 basis points, more clarity will come after the meeting.
3]Dollar Index: After the US currency climbed to a 20-year high, we have seen some downside in the US dollar. “If the dollar continues to depreciate, in that case, it could have a positive impact on FIIs and they may cut or curtail their selling on Dalal Street. A weaker dollar reduces margin pressure on oil stocks, thereby reducing the risk of stock trading.” The price rises. Oil majors,” said Avinash Gorakshakar.
4]Economic Activities in China: Deepak Jasani said, “China’s record cut above expectations for 5-year PLR (for the second time this calendar year) raised hopes of further policy easing and boosted risk sentiments. This pushed Asian and European markets higher. Helped to do business.” Head of Retail Research at HDFC Securities.
“China is the largest consumer of metals and the demand for metals is expected to increase due to the momentum in the Chinese economy. Therefore, traders in metal stocks are advised to keep an eye on Chinese economic activity in the next few weeks. Keep an eye out.” Avinash Gorakshakar.
5]Global Inflation and Bond Yields: “Many support the Fed’s decision to raise rates, and many think they will push the economy to ruin with this increase; however, the clear answer to the prospects comes from bond yields and inflation numbers. These numbers need to be watched closely to see if the stress shows any signs of easing,” said Sonam Srivastava of Wright Research.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.