US Retail Sales Dollar Index: Top 5 Stock Market Triggers to Watch This Week

Next week fair: With Indian inflation falling to its lowest level in five months and the US Fed’s mildly hawkish speculation about rate hikes, the Indian stock market ended positively on all four trading sessions over the past week. NSE Nifty finished in green territory for the 7th week in a row, rising from the lows of 15,183 to 17,698. On a weekly basis, the Nifty 50 index finished 1.73 percent higher, while BSE Sensex posted 1.42 percent weekly gains and closed at 58,387 levels.

Anuj Gupta, Vice President — Research at IIFL Securities said of the short-term outlook for the stock market: “India’s retail inflation, as measured by the Consumer Price Index (CPI), has fallen to a five-month low of 6.71 percent in July, down from 7.01 percent in June Separately, India’s factory output, as measured by the Index of Industrial Production (IIP), had grown 12.3 percent in June, two separate data released by the Ministry of Statistics & Program Implementation (MoSPI) showed Friday, with lower crude oil and commodity prices the main contributor to the recovery.”

Anuj Gupta called it a positive sign for the Indian stock market, adding, “We expect Sensex to test 60000 to 61000 levels and handily test 18000 to 18500 levels. Index could move further up.”

“Domestic markets continued to travel north during the week, closing in green for the fourth consecutive week. The NIFTY spot index regained 17,700 marks after April 2022. Sentiment remained optimistic, mainly due to positive global signals. The recovery in US markets, along with FIIs becoming buyers in the cash segment, forced the bulls to dominate again,” said Mehul Kothari, AVP – Technical Research at Anand Rathi.

Here we list the top 5 triggers that could dictate the stock market next week:

1]Dollar Index: “After falling below the 105 levels, the dollar index has recovered strongly to form a base around 104.50 levels. But it has broken the previous support of 105, signaling further weakness of the US dollar against major currencies over the worldwide, especially after the ease of US inflation data. Any further correction in the dollar index would be positive news for the Indian stock market,” said Anuj Gupta of IIFL Securities.

2]Sales in the US: “The release of US retail sales data at the FOMC meeting is expected on August 17, 2022. This data would provide more insight into the US economy, so investors on Dalal Street are advised to watch this data release next week on August 17. to keep,” says Anuj Gupta. said.

3]FII DII data: “FIIs have turned surprisingly copper in August, and many expect that the FII sell-off will end and buying in the markets will begin. Of course, FII buying will depend on US inflation and other global data, but FII buying patterns will be most important.” to watch,” said Sonam Srivastava, founder of Wright Research.

4]Commodity Prices: “Crude oil has cooled to $92 a barrel, and the effect is visible in lowering inflation in the US and India. Similarly, metal prices are low, cheering commodities consumers, but given the geopolitical environment, you never know when The prices will start to rise again, so raw material prices will be a crucial trigger to watch out for,” said Sonam Srivastava.

5]Geopolitical Tension: While the conflict between Ukraine and Russia remains a major concern for the world, new tensions between the US, China and Taiwan have also raised concerns for the market. Therefore, the progress in both geopolitical crises will be a big trigger for the market.

Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms, not Mint.

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