stock market next week Last week was another week that was all about bulls. In all the five trading sessions last week, the bears tried hard to make their presence felt on Dalal Street, but each time the bulls managed to recover. As a result, the magnitude of the weekly increase was small but the direction remained positive.
“Nifty 50 index rose over 1 per cent (1.39 per cent to be precise) and closed near 17,400 mark. Weekly Line Chart nifty has now confirmed a breakout from the declining trend line and it indicates a possibility of a move towards the 17,600 to 17,800 mark. However, if we look at the daily chart, we can see a narrow range of bodies in every trading session due to the tussle between the bulls and the bears. This suggests that either the market is uncertain and breathing a sigh of relief or there could be exhaustion.”
Here we are listing the top 5 triggers that can affect the stock market next week:
1]US Inflation Data: “US inflation data will dictate the direction of global markets for the next few weeks. If the numbers turn out to be worse than expected, we could see volatility as the US Fed continues bullish. Conversely, inflation in the US would have moderated. Sonam Srivastava, Founder, Wright Research, said, “We can see confirmation that the market will get relief in the second half.
2]Dollar Index: “The dollar index has rebounded from its 105 support level which is going to put pressure on the global equity markets. Fresh buying in the US dollar could erase the pressure created by the European Central Bank, Bank of England and other central banks on the US currency. IIFL Anuj Gupta, Vice President – Research, Securities said.
3]US China Taiwan issue: “While the Ukraine-Russia conflict continues to be a significant cause of concern for the world, new tensions between the US-China-Taiwan have also raised concerns for the market. A big trigger will be the market,” said Sonam Srivastava of Wright Research.
4]FII Shopping: FIIs have turned out to be a surprising buyer in August, and many expect that the FII sell-off will end and the market will start buying. Of course, FII buying will depend on US inflation and other global data, but it will be most important to look at the buying pattern of FIIs.
5]US Fed Speech: “We have speeches from two key Fed officials next week that will shed light on the way forward for monetary policy. Any sharp signal from Fed officials in this speech could trigger fresh buying in the US dollar, leading to a sell-off for FIIs. Indian equity market,” said Anuj Gupta of IIFL Securities.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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