Indian stock market mood for coming week is looking cautiously positive only,but not fully carefree . After last week's strong closing,investors are clearly watching global crude oil prices,US-Iran relations and economic data very closely.
And previous week actually ended on solid note . NIFTY 50 surged by 390 points,or 1.65%,to close at 24,013.10 . BSE SENSEX also gained approximately 1.7%,which shows buying interest was not weak at all,especially in mid-cap and small-cap stocks.
But main comfort came from easing tensions in West Asia,mainly around US-Iran relations . Once talks looked better,market fear around oil supply disruption reduced and crude oil prices dropped nearly 7% to fall below $80 per barrel mark.
And for India,this is not small thing ah . Since country depends heavily on energy imports,cheaper crude can help reduce inflation pressure,improve current account deficit and support Indian rupee's value . So naturally,market people took this as positive signal.
Few things traders are watching now:
- Key resistance levels for NIFTY are seen around 24,150-24,200 range.
- Immediate support is expected in 23,850-23,800 range .
- Investors are waiting for India's May industrial production figures and US inflation data.
And now focus will shift to data side . India's May industrial production (IIP) figures,US personal consumption expenditures (PCE) inflation data and first-quarter GDP growth of the United States can all influence mood in coming sessions .
Trading week will also be shorter because of Muharram holiday on June 26 . So investors may not get full week to react slowly,and that means stock-specific moves can become more sharp than usual.
Experts are still suggesting strict risk management because trend is sideways to bullish,not fully one-way bullish . If NIFTY breaks above resistance levels,then more gains can come,but if global mood changes again because of oil or US-Iran relations,things can get tricky fast.
And honestly,this is that kind of market where everything looks positive on screen,but one bad global headline can change mood same day only…
