Preparing well in advance is a must for all investors and traders and for that one must have a 360-degree view. This 360-degree view comes from various data, events and past week market performances both nationally and internationally. A take from Senior Research Analyst Manish Taneja.
Let’s learn how Stock market data and event from last week can help intraday traders prepare for the upcoming week. Prepare for upcoming stock market challenges using economic data analysis.
Weekly Analysis of Stock Market
Stock market posted gains last week as government announces stimulus to reverse the slowdown of GDP growth in the Indian equity market. The market response to government first round of mini fiscal stimulus was euphoric. Although, it sibilates by the weekend. Government is continuously adding efforts to stabilize the fragile market situation through several fiscal monetary incentives.
Last week, Nifty 50 enter a consolidating phase with lower velocity in the downside. The monthly market resistance calculates at 11,840 levels, weekly resistance at 11,095 level, and daily resistance at 10,905.
Market on Monday experience higher stimulus as a result of India, Financial Minister to boost the economy through changes in fiscal policy. To revive the growth, the government tides over the constraints in doing a CAPEX. On Tuesday, the stop at the resistance level, while the market on Wednesday oscillates to lower resistance.
Last week, the higher resistance rate of the market was on Monday at 11,095 while the lowest range was at 10,905 on Friday. The calculation to support market was initiated using Uni-Directional Trade Strategies. UDTS facilitate the finding of market prediction during intraday trading as well as positional trading.
So the market performed as per the levels are given in our last week episode.
Impact of Data and Event on Stock Market Last Week
Under the section, we will discuss the impact of data and event on national as well as global market last week. The impact is divided into two segments; positive and negative.
Negative Impact on Indian Stock Market
- Indian – Pakistan Tension: It is the most vulnerable factor to influence the Indian stock markets.
- GDP in the first quarter was 5% which was expected to be 5.7 %.
- The market also experiences a slowdown in the economy during the last week.
- Consumer demand at 3.4% in first-quarter v/s 7.2% from last year quarter.
- Manufacturing growth is reached 4.7% growth in the first quarter v/s 12.1% last year quarter. The sector experience high fall down.
- Fiscal deficit reaches 78%
Global events that can create a negative impact on Indian stock market
- Constant global slow down
- USA – China Trade tension
Global events that can create positive impact on Indian stock markets
- Cooldown USA-China Trade issues
- Italy resolves political crisis
Domestic Events that can create positive impact on Indian Stock Market
RBI transfers INR 1.7 lac crores to the government to boost the economy.
- Removal of surcharge in FDI.
- INR 70k crore grant to PSU banks for Recapitalization
- Export subsidy on sugar
- Liberalize new FDI policy
- Mega-merger of PSU banks and other banking reforms
Before going to any conclision lets check forthcoming events
Here are the upcoming events that will impact the stock market this week.
- On Monday- the US and Indian stock market is closed due to Labour Day and Ganesh Chaturthi celebration.
- TUESDAY-03-SEP -US PMI data
- THURSDAY 05-SEP- ADP NON-FARM DATA OF US
- THURSDAY 5-SEP-CRUDE OIL INVENTORY
- FRIDAY-06 SEP–US NON-FARM PAYROLL AND UNIMPLOSMENT DATA
Here is what you should know about the stock market update next week.
- In the coming week, the market expects to remain sideways.
- ABOVE 10987 LEVEL MARKET CAN TAKE SHORT TERM UPMOVE WITH
- MAJOR RESISTANCE OF 11095. And if 11095 is breached market can proceed to 11300 levels
What to Do This Week?
- The market in long-term remains bearish due to overall slowdown.
- In the short term, the market is bullish with major support 10700.
- The trading range will be 10,700 to 11,300.
- Short term Buying is suggested only above 11095 levels with stop loss 10987.
- Long term player should take bearish positions with stop loss 11095.
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