Crude Oil, US-Iran Talks In Focus, IIP And US Data To Guide Market Direction Next Week
Indian stock markets may stay cautiously positive next week as softer crude oil prices and easing US-Iran tensions support sentiment. Investors will closely watch oil prices, domestic IIP data and key US economic indicators. Technical charts suggest a sideways-to-bullish trend for markets.
Indian stock markets may stay cautiously positive next week as softer crude oil prices and easing US-Iran tensions support sentiment. | File Pic
Mumbai: Indian stock markets are expected to remain cautiously positive in the coming week as investors track crude oil prices, US-Iran developments and important economic data.
Benchmark indices ended the previous week on a strong note.
The NIFTY 50 gained 390 points, or 1.65 percent, to close at 24,013.10.
The BSE SENSEX also rose around 1.7 percent during the week.
Broader markets performed even better, with gains of more than 3%, showing strong buying interest in mid-cap and small-cap stocks.
Lower Crude Oil Supports Sentiment
Market sentiment improved mainly because of easing geopolitical tensions in West Asia.
A positive development in US-Iran relations reduced concerns over possible supply disruptions in global oil markets.
As a result, crude oil prices dropped sharply during the week.
Prices fell nearly 7 percent and slipped below the $80 per barrel mark.
Analysts said lower crude oil prices are good for India because the country imports a large part of its energy needs.
Cheaper crude can help reduce inflation, improve the current account deficit and support the Indian rupee.
The rupee also strengthened nearly 1 percent against the US dollar during the week, adding further support to market sentiment.
Key Levels to Watch
Technical analysts believe the 24,150-24,200 zone will act as an immediate resistance area for Nifty.
A strong move above 24,200 could improve bullish momentum and push the index towards 24,500.
On the downside, immediate support is seen in the 23,850-23,800 range.
If Nifty falls below 23,800, selling pressure may increase and pull the index closer to 23,500.
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Economic Data in Focus
Investors will also watch important economic data next week.
Key numbers include India’s May industrial production (IIP), US personal consumption expenditures (PCE) inflation data and first-quarter US GDP growth.
The trading week will also be shorter due to the Muharram holiday on June 26.
Experts advise investors to stay stock-specific and follow strict risk management while markets remain sideways to bullish.
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