FOMC, Q2 earnings and Mamaearth IPO among top 10 factors to move Dalal Street this week
Nifty50 ended with weekly declines of 2.5% amid the Israel-Hamas conflict, higher bond yields and the ongoing earnings season. Amid a host of important domestic and global events lined up during this week, know what lies ahead for the stock markets.
After relentless selling in recent days, Nifty has temporarily paused its decline due to an oversold chart setup, Rupak De, Senior Technical analyst at LKP Securities said, adding that the index closed significantly below the critical breakdown level of 19,250.
As long as it stays below 19,250, the market may continue to be inclined towards selling on any upward movements, he opined as he sees a further downside opening below 18,800 if weakness continues from here, he added.
«This is because put writers are likely to defend Nifty with substantial positions at 18,800, with immediate support placed at 19,000,» he reasoned.
Factors that are likely to impact movement when markets reopen this week:
1. Fed FOMC
The US Federal Reserve’s two-day Federal Open Market Committee (FOMC) meeting will begin next week on Tuesday and the Central Bank is expected to keep interest rates unchanged at 5.25-5.50%. Global stock markets will be keenly watching its commentary on the future interest rate trajectory and the US economy.
The Bank of England (BoE) will also come out with its policy rates as well, during the week.
2. US Markets
The US markets ended mixed on Friday. While Dow 30 fell 367 points or 1.12% to 32,418, the S&P 500 closed at 4,117, down 19 points or 0.48%.
