Published by sensitrend date : 14/08/2023
The Indian stock markets have experienced losses for three weeks in a row. After the RBI's policy decision, banking stocks experienced sharp falls; negative global cues and selling pressure from international investors also had an adverse effect on market sentiment.
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Data on local inflation, global macroeconomic indicators, FII activities, and crude oil prices will be the main topics of discussion in the THIS week.
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According to recent data, India's industrial production fell by 3.7% in June, which is cause for concern. To $601.453 billion, foreign exchange reserves decreased. Data on inflation from the Wholesale Price Index (WPI) and Consumer Price Index (CPI) will affect the markets THIS week. Due to growing food prices, experts expect the CPI to increase by 6.5%.
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The WPI Inflation, CPI Inflation, Balance of Trade, and Foreign Exchange Reserves are among the significant data releases scheduled for the following week. Traders should exercise caution, particularly in light of the possible implications of inflation figures.
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Markets will be impacted by a wide range of global macroeconomic data, such as GDP growth rates, industrial production, and inflation readings from different countries.
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Saudi Arabia and Russia's production cuts caused the price of crude oil to steadily rise. The second-largest importer of crude oil, India, could be impacted by additional increases, which would change the mood of the market.
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FIIs were net sellers, selling shares worth Rs. 4702.06 crore, while DIIs were net buyers, buying shares worth Rs. 2224.3 crore. Monitoring FII activity will reveal potential market trends.
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Following the RBI policy announcement, market sentiment changed. These things may keep the THIS week under pressure.
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The Nifty and Bank Nifty indices are currently under pressure. Price action suggests the potential for further decline.
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The chart structures of the benchmark indices haven't fundamentally changed despite the continued decline. Within the larger uptrend, the recent dip is seen as a corrective phase. After this phase of corrective trading, look for a new rebound in the upcoming weeks.
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A crucial support level for Nifty is located around 19,300. If this support is breached, prices could drop to levels between 19,100 and 19000. In a more pessimistic case, the Nifty might go as low as 18,800. The probable bottom is anticipated to fall between 19,100 and 18,800.
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There is significant resistance for BankNifty between 44,450 and 44,600. Expect a likely decline initially to 43,500, then a potential further decline to 42,700.
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