The
week starting on June 23 will be important for the stock market. From the
Israeli-Iran War to the sale of foreign investors to the technical elements,
everything will determine the movement in the market.
Now 5 factors that will determine
the direction of the market…
1. Israel-Iran war: The current tension in the
Middle East is a major threat to the global market. After Israel, the US also
recently attacked Iran’s nuclear facilities, which has caused crude oil prices
to increase by 18%.
If
Iran tries to close the Strait of Hormuz or if a US military base is attacked,
oil prices could rise further. This poses a risk of inflation for oil-importing
countries like India, which could be negative for the stock market.
2. Foreign Investors (FIIs) View:
FIIs bought shares worth Rs 7,940.70 crore in the Indian market on June 20.
This is the third largest investment inflow in a single day this year. This was
the fourth consecutive day of FIIs buying shares in the Indian market.
At the
same time, Domestic Institutional Investors (DIIs) are also buying on every
dip. DIIs have bought shares worth Rs 19,800 crore in the last 4 trading
sessions. If the buying by FIIs and DIIs continues like this, it is a positive
signal for the market.
3. India-US Trade Agreement:
The trade agreement between India and the US is expected to be finalized by the
end of July. If the agreement is signed on time, it will be a big positive
trigger for the market. In February 2025, India and the US started talks on the
first phase of the trade agreement.
4. US Macro Data:
US GDP growth data and the Federal Reserve’s interest rate decision will be on
the radar of investors this week. If the US economy shows signs of a slowdown,
the dollar could weaken, which could increase foreign fund inflows into the
Indian market.
5. Technical View: According to Ajit Mishra of
Religare Broking, the Nifty has once again approached the upper band of its
consolidation range. He said, “If the Nifty holds above 25,200, it will
confirm a breakout.”
This
could lead to a rise towards the 25,600-25,800 range. On the downside, 24,700
and 24,400 will act as immediate and important support levels.”
Six
new IPOs to open in mainboard segment
Six
new IPOs are set to open in the mainboard segment this week. These include
companies like Kalpataru, Ellenberry Industrial Gases, Globe Civil Projects,
HDB Financial, Sambhav Steel Tubes and Indogulf CropSciences. These IPOs are
likely to attract the attention of investors.
Last
week, the Indian stock market witnessed rangebound trading.
The
stock market started off slow last week, but later on, the market picked up
momentum on the back of strong performance from key sectors like banking and
IT.
As a
result, benchmark indices Nifty and Sensex closed near their weekly highs. On
June 20, the Sensex rose by 1046 points while the Nifty rose by 319 points to
close at 25,112.
What
could happen next?
If
Israel And if a diplomatic deal is reached in Iran, the market could see a
strong rally this week. On the other hand, if tensions escalate further, crude
oil prices could rise, which would impact the Indian market.
Disclaimer: This article is for information
and educational purposes only. The opinions and advice given above are those of
individual analysts or broking firms, not Divya Marathi. We advise investors to
consult certified experts before making any investment decisions.