Powell’s Jackson Hole Speech, FII activity among 8 important triggers to move the market this week

Markets closed higher for the second consecutive week, with the Nifty 50 and Sensex almost 1%won. Optimism around a possible GST revision increased sentiment early, and the momentum that was held most of the week for some profit booking in the last session Pared profits. Towards the end of the week, the Nifty was 24,870.10, while the Sensex settled at 81,306.85.

The rally was mainly fed by domestic policy signals, with the expectations of GST rate changes that stimulate the appetite of investors. Sentiment was further lifted after S&P has upgraded the sovereign creditworthiness of India. Caution, however, remained as mixed geopolitical signals and uncertainty about policy rates for the American Federal Reserve chairman Jerome’s Jackson Hole address led to a profit.

After a steady run -up, Nifty paused on Friday and suggested a short consolidation for the next leg higher. The index retains above 50 EMA, which strengthens the upright trend in the short term. On the other hand, the support is 24,800; If you stay above this level, the trend becomes intact with a reach for progress to 25,000-25,250.

Factors that probably influence the movement when the markets reopen this week:

1. Fed Fed Chairman’s Dovish Stance: The market reaction to the undertone undertone of the American FED chairman Jerome’s Jackson Hole comments will remain one of the most important triggers.
2. Geopolitical developments: In the field of global front, geopolitical developments around the TariefdeAdline of 27 August probably also have an influence on the market.
3. Domestic data: Investors will probably follow the domestic data of the HSBC production, services and compound PMIs of the HSBC, together with the most important IIP and GDP prints, which will serve as critical indicators of Economic Momentum.
4. Technical triggers: Technically, the Nifty has approached the support zone of the advancing average in the short term, with the 20-Dema being placed around 24,800.

“Maintaining above this level can open the door for a movement to 25,250 Initially, followed by 25,400. In the case of a decrease it can fill the gap around the Herten The immediate support almost 24,600, with a stronger base around 24,350,” said Ajit Mishra, SVP of Religare Broking.

1. Monthly expiration date: The monthly decline of 28 August is the coming week. The volatility around the same time can have an impact on the markets.
2. FII data: Foreign Institutional Investors (FIIs) continued their selling Spree in August and drawers shares worth RS 25,564 Crore via the stock exchanges until August 23. This took the total shares selling this year by FIIs to date to RS 1.57,440 Crore, according to market data.
3. Inr moves: the rupid weakened after he initially won at the GST reduction news, but faded the momentum as a persistent FII sale pressure on the sentiment. Marktfocus is now shifting to the speech of Powell in Jackson Hole, which is expected to guide the dollar index and thereby influence the direction of the rupid.
4. Rough prices: Rough price movements and a worldwide risk sentiment will also play a crucial role in determining trends in the short term.

(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)