Bull vs bear: Top 5 triggers that may dictate stock market next week

Bull vs bear: Due to weak global signals, the bear continued to hold its grip on Dalal Street – pulling the Nifty 50 index below 16,000 levels. The Bears had a complete grip on the Indian stock market throughout the week as the smaller declines sold in minutes and Nifty lost almost 4 percent during the week and ended below 15,800 levels. Interestingly, in this weak market, most of the positions built by FII are on the short side and their “Long Short Ratio” in the index futures segment is at its lowest, which has not been seen for a long time. Nor have the sectoral indices yet shown any signs of reversing or bottoming out.

Ruchit Jain, Lead Research at 5paisa.com, advised investors to avoid any kind of urgency and concluded about the market bottom, “The sector indices have not yet shown any signs of turning or reaching the bottom. The banking index showed some relative strength. “but in the end it resumed the downward trend on the weekly closing day and the day after. Thus, the trend is also negative here and since there is no difference yet, one should not be in a hurry to fish on the bottom.”

Speaking of the key triggers that could dictate the stock market next week, Anuj Gupta, Vice President – Research at IIFL Securities, said, “The week ending Friday was the worst in two years. “one of the main causes of the stock market crash this week. These two are expected to continue to dictate the global markets including Dalal Street next week as well. One has to keep an eye on the upcoming corporate results as well.”

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

1]Dollar Index: The impressive rise of the dollar index continued this month and the index rose to its 230-year high this week. So investors fish out money from stocks and other investment instruments and pump money into US dollars. So the index movement will be crucial in the immediate term and therefore investors and traders are advised to keep a close eye on the dollar index.

2]Crash in commodity prices: “Commodity prices suddenly crashed last week and lowered metal stocks. Shares such as SAIL, VEDL and HINDALCO were the worst performing last week’s stocks. The direction of commodity prices and the continuation of volatility will determine Metal’s fate and linked sectors,” said Sonam Srivastava, founder of Sonam Srivastava. .

3]Rupee vs dollar: “Last week, the Indian National Rupee (INR) fell to record low triggered new sales of FIIs. If rupees continue to remain weak, sales of FIIs may pick up further and therefore deviations in rupee dollars are an important factor that could dictate the stock market next week.” said Anuj Gupta at IIFL Security.

4]Sales data in the US: It will affect US dollars directly and any ease in dollars can trigger a profit entry in dollars. So, retail data in the US is an important factor that could affect the stock market next week.

5]Q4 result: “We are in the middle of the earnings season. Many companies, including the IOC, DLF, ITC, Lupine, etc., will publish profits next week, which could determine the fate of many sectors,” said Sonam Srivastava at Wright Research.

Warning: The views and recommendations above are from individual analysts or brokerage firms, and not from Mint.

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