China crisis for ECB meeting: 5 factors that could affect the stock market this week

“We saw some correction in Nifty during the week, but the index has not broken its important support levels. It has recently risen by 38.2 per cent from 15180 to 16270 and has not broken the rising trendline support around 15800. Lower. On the time frame chart, a ‘Higher Top Higher Bottom’ structure is observed which is still valid and remains bullish in the near term outlook as long as the index breaks the crucial support of 15800,” 5paisa.com But Lead Research Ruchit Jain said.

Expecting more from the bulls when the market opens next week, Mehul Kothari, AVP – Technical Research at Anand Rathi said, “Though the last session of the week ended on an optimistic note, there is still a lot for the bulls to hold. Index Nifty Spot started the week with a negative margin and then continued to move downwards to slip below the 15900 mark. However, towards the end of the week, it was able to recover sharply and reclaim the 16000 level. It was successful. Eventually, it dropped by about one percent during the week.”

Hence, stock market investors are advised to be cautious about the top triggers that could control the movement of Dalal Street when the market reopens on Monday. Here we are listing down the top 5 triggers that can determine the stock market momentum next week:

1]ECB meeting: The European Central Bank (ECB) policy meeting is scheduled for next week, which is expected to address inflation and other eurozone woes.

Suggesting stock market observers and investors to be cautious against the ECB meeting, Divam Sharma, founder, Green Portfolio, said, “Eurozone inflation numbers are projected in the coming week, with the euro to the tune of 1:1 against the US dollar.” Parity is reached. For the first time in two decades, and the Nord Stream 1 pipeline is being shut down for maintenance, energy costs for the continent could soar, especially following the closure of major plants in the US that are in Europe. Were major exporters of .. will be focused on renewable energy. Grow manifold.”

2]China Crisis: “After the Evergrande crisis in China is slowly snowing in a major hit on Chinese real estate as mortgage payments are not reaching nearly 100 developers, the crisis is now getting big enough to affect China’s financial system. That’s $6.8 trillion from hard-pressed developers sitting on outstanding mortgages, said Divam Sharma of Green Portfolios.

3]Q1 Result: Q1FY23 earnings season began with the announcement of IT sectors worsening global macros in terms of rising inflation, economic slowdown, currency headwinds, and decelerating revenue growth in FY24E to cut into low double-digit growth. Chances are.

“Traders and investors are expected to keep an eye on the upcoming company results such as the Q1 results of HDFC Life, ICICIGI, HUL, Wipro, Polycab India, AU Small Finance Bank, etc. Will be looking for positive. Negative commentary on stock and sector-specific. For those who believe in sector and stock-specific trading during volatile markets, the upcoming Q1 earnings will be significant for the Indian stock market,” said Bonanza in the portfolio. Jitendra Upadhyay, Senior Equity Research Analyst said.

4]Rupee Vs Dollar: “The Indian rupee is at a lifetime low. We have already touched Rs 79.99 for every dollar, and we may see the numbers worsen from here. Our trade balance of depreciating rupee, inflation numbers, Foreign education has a huge impact on overseas travel, remittances and growth will be a major trigger, said Jitendra Upadhyay, Bonanza Portfolio.

5]US Manufacturing Data: With US inflation data climbing to a 41-year high, all eyes are now on the US manufacturing and services PMI data, which will lead to further volatility in global equity markets.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.

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