Skip to main content

FOMC meeting and other global cues will dominate market next week

Indian markets are outperforming its global peers this year. Last week was especially a stellar one where Nifty and Sensex hit their fresh all-time highs of 17,793 and 59,737, respectively. Meanwhile, Bank Nifty completed its loose end to check its new all-time high. Relief package for the telecom sector, the announcement of a nasty bank, strong FII inflow and large short-covering were key factors for the Indian markets to outperform.

Next week goes to be critical for the Indian market after a recent outperformance because there’s some weakness in global markets where the result of Federal Open Market Committee (FOMC) meeting, which is scheduled on September 21-22 are going to be a critical factor.

There is an opportunity that the US Fed may mention the timeline of bond tapering which might be as early as November which may cause a cautious move within the global equity markets. Some signs of hamper in China also are a explanation for worry especially for the metal sector and most of the metal stocks have began to show weakness from last week. aside from US Fed, the Bank of Japan also will begin with its monetary policy on September 22. Rising Covid-19 cases within the USA and other countries can also disturb the mood of the market

The movement of the Dollar index and US bond yield will play a key role within the behaviour of emerging markets like India. The dollar index is trading near-critical resistance of 93.5 and if it manages to cross this level then we will expect a pointy surge moreover US 10-years bond yields also are giving signs of bottoming out. it’ll be important to ascertain FIIs’ behaviour if there’ll be an increase within the dollar index and bond yields because we’ve seen a robust buying within the previous couple of days by FIIs which is resulting in strong bullish momentum in largecap stocks.

We are during a roaring market and that i believe it’s going to continue for subsequent 2-3 years but after an extended time, i’m sounding a touch cautious as there are some signs which indicate that a short-term correction is round the corner. The Nifty Midcap index is witnessing a reversal from upsloping trendline resistance around 30,500 and Nifty also witnessed some selling pressure near the 17,800-17,850 resistance zone. The sharp rally on Thursday and therefore the half of Friday’s, has taken out many weak shorts within the system whereas weak longs may get trapped at higher levels.

On the downside, 17,430-17,250 may be a critical support zone; below this, we will expect a correction within the market which might be extended towards 16,700 level while if Nifty manages to require out the 17,800-17,850 zone then we will expect it to hit 18,000 mark.

If we mention derivative data then Put Call Ratio (PCR) is at 1.15 level and FIIs’ long exposure within the index future stands at 68 percent which remains indicating comfort within the market but India VIX is showing an upside momentum that would cause volatility within the near term.

Comments

Popular posts from this blog

SIP Schemes are there and whether you choose one

SIP permits you to invest a particular amount at regular intervals. It is a deliberate approach towards investments and assists you in the habit of saving and constructing wealth for the future. SIP Calculator assists you to calculate how tiny investments made at regular intervals can get you much better returns over a long span of time.  SIP With the equity markets on the increase, now is the correct time to make your money work for you.   You can find out the Best sip to invest for highest growth with the help of professionals. If you have a good knowledge in the world of mutual funds then you can make a choice for yourself after considerable exploration. But otherwise you can also take help of professionals who are there to guide the investors in picking the right funds. Before you get into any details you should know that SIP is done by the individuals to construct in their wealth, save for their future that too in the absence of any hassle. You can begin with as low as rupees five

How to Navigate the Enrollment Process for Individual Health Insurance Plans

Health insurance comes in different types and offers coverage against the increasing costs of medical treatments. However, there are some differences between individual health plans and family health plans. Understanding how these plans work can help you decide which one is more suitable for you.   When it comes to healthcare coverage, a health plan is designed to provide financial protection to a single person against medical expenses and hospitalisation costs. This type of plan can be purchased for oneself, spouse, children, or ageing parents. The premium rates for an individual health insurance plan are determined based on various factors such as age, gender, and medical history. These plans offer more comprehensive coverage that can be customised according to the policyholder's specific needs and health conditions. Additionally, policyholders can opt for add-ons to enhance the coverage of their individual insurance plan. Some Features of Healthcare Insurance Plans for Individ

What type of SIP Schemes are there and whether you choose one

SIP permits you to invest a particular amount at regular intervals. It is a deliberate approach towards investments and assists you in the habit of saving and constructing wealth for the future. SIP Calculator assists you to calculate how tiny investments made at regular intervals can get you much better returns over a long span of time.   With the equity markets on the increase, now is the correct time to make your money work for you.     You can find out the  Best sip to invest for highest growth  with the help of professionals. If you have a good knowledge in the world of mutual funds then you can make a choice for yourself after considerable exploration. But otherwise you can also take help of professionals who are there to guide the investors in picking the right funds. Before you get into any details you should know that SIP is done by the individuals to construct in their wealth, save for their future that too in the absence of any hassle. You can begin with as low as rupees fiv