Stock Analysis: Now that the earning season is over, here are 5 key triggers for Nifty this week

NEW DELHI: Despite Friday’s profit posting, the headline index Nifty managed to close positive for the fifth week in a row, posting a weekly gain of 0.34 percent. Now that the peak of the earnings season has passed, attention is now shifting to macro events, FII flows and the movement in the dollar index and crude oil. The planned derivatives expiration on Thursday will keep participants busy this week as well.

“The markets could be consolidating after five weeks of consecutive gains and that would be healthy. We’ve barely seen a major drop in the index in recent phases of consolidation, but a lot will depend on the performance of US indices, where we still see room for further upside potential,” said Ajit Mishra, VP Research,


Here are 5 key factors that could affect the market’s mood this week:

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dollar index
The US dollar index hit a five-week high on Friday, posting its biggest weekly gain since April 2020, as investors adjusted for the likelihood that the Federal Reserve will continue to raise interest rates to fight inflation. Analysts say a further rise in the dollar index could disrupt capital inflows into the Indian market.

Crude Oil Rates

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Brent crude futures fell below $97 a barrel on Friday, falling about 1.5 percent this week on a stronger US dollar and fears that an economic slowdown would weaken crude demand. “In light of recession concerns, Brent crude prices are falling, having reached their lowest level in six months last week. The market will try to decipher its movements going forward,” said Apurva Sheth, Head of Market Perspectives, Samco Securities.

FII Stream
One of the main factors driving the rally in the market in recent days has been the buying frenzy of FIIs. The market will monitor this trend closely, as any reversal could trigger a temporary eruption, Sheth said.

Macro data
The US will release its first unemployment filing data on August 25, while Fed Chair Jerome Powell will speak at the Jackson Hole Economic Symposium on the 26th. “Global investors will be closely following Powell’s comments and the minutes of the European Central Bank meeting in July. During this volatile session, investors may resort to buying dips of high-value stocks,” said Vinod Nair, Head of Research at


Technical factors

Friday’s large bearish candle has engulfed price movement from the previous three sessions, signaling weakness.

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One, said the overall trend remains strongly bullish and as we climbed vertically from 16,400, we could see even more gains this week. “The vision remains valid as long as 18,000 are not violated on a sustainable basis. Also in the case of this probable drop, this should be considered a healthy development for the next leg of the rally and should therefore be used to go long. ”

(Disclaimer: Recommendations, suggestions, views and opinions of the experts are their own. They do not represent the views of Economic Times)

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