Nifty over the past month has seen a strong rebound with gains to the tune of 8.6%. In fact, July 2022 would see the highest gains in 23 years. The week ended with gains even as the US Fed raised rates, albeit in line with expectations. In addition, the traditional US economy has also slipped into recession due to two consecutive quarters of GDP contraction.
According to Geojit’s head of research, “the market perceived that the aggressive monetary policy would soon come to an end. This added optimism in the domestic market.”
Now the coming week will be critical, key macro data will be released with the start of the new month. In addition, automakers must react to sales data released on the first of the month.
In addition, an RBI MPC meeting is scheduled during the week and analysts estimate a rate hike of up to 35 basis points to counter inflation. 1 Bps is one hundredth of a percentage point.
Besides that, the multitude of quarterly results also needs to be watched.
Regarding likely stock market momentum, Apurva, Head of Market Outlook, Samco Securities, said, “The short to medium term. The trend is still bullish and investors may be looking for entry points around lows. 16,800 and 16,600″.
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Article first published: Saturday, July 30, 2022, 11:26 p.m. [IST]