US Q2 GDP data: Top 5 catalysts that may dictate the stock market this week

“During the past week, we were not expecting a one-sided move in the market and expected the rally to be stopped near the 16,450 mark. However; bulls were not detected in the stock market during the week and we saw a move of over 4 percent in the NIFTY spot. This is mainly on the back of positive global signals and short coverage by FIIs in index futures, said Mehul Kothari, AVP – Technical Research at Anand Rathi.

“This week has been great for the markets with gains in all five sessions. Over the past month, medium and small businesses have gained more than 10 per cent. Due to the slowdown in commodity prices, prices of consumer goods and automobiles have soared,” said Sonam Srivastava, founder of research firm Wright.

Here are the top 5 catalysts that may affect the Indian stock markets this week:

1]US Federal Reserve meeting: “Given the hawkish stance of the US central bank, the market is anticipating a major rate hike announcement from the US Federal Reserve monetary policy meeting. This is expected to set the direction for future financial markets as it may lead to FII selling again as it is expected to attract bond yields. The US will have more money than the stock market in such a scenario,” said Anuj Gupta, Vice President – Research at IIFL Securities. He also said that the dollar index has fallen in the past week and that a US Fed rate hike may again increase the demand for the US dollar as the “investor” leads to a sharp rise in the US dollar (USD) against major currencies including the Indian national. The rupee (INR).

2]US GDP data for the second quarter: “The US Q2 GDP numbers will be released on July 28, 2022 and the whole world is eagerly awaiting this release. These data are expected to give a perfect picture of the US economy and set the tone for the world. Stock markets, including Dallal Street. Positive numbers may lead to output As the Nasdaq tracks US jobs data and FDP numbers, any positive announcement on the GDP front from the US government has been said by Anuj Gupta of IIFL Securities: “

3] Nasdaq Index: “One has to remain vigilant about the results of 5 major technology companies listed on Nasdaq – Microsoft, Google, Meta Platforms, Apple and Amazon. These companies will announce their quarterly earnings next week. A positive quarterly earnings announcement by these tech giants may Leads to extending the rally of Nasdaq that started last week.Apart from this, the Nasdaq is following the US jobs and GDP data and the US GDP for the second quarter will come on July 28 next week.Therefore, bulls are advised in India who are waiting Trend reversal in Indian IT stocks to stay afloat “for these NASDAQ related catalysts,” said Anuj Gupta.

4]Company results: “Next week we will see more than 200 companies announce their earnings. Among them are HDFC, TATAMOTORS, ITC, LT, ASIAN PAINT and BAJFINANCE, among many other notable names. The numbers will be published, along with management comments,” Sonam Srivastava said. crucial to the direction of the market.

5]Commodity prices: “Crude oil has cooled to $96 a barrel, and many are cheering this as a sign of easing inflation. Likewise, metal prices are low, which brings joy to commodity consumers, but given the inflationary environment, you never know when prices will start,” Sonam Srivastava said. On the rise again. So commodity prices will be a critical stimulus to watch.”

Disclaimer: The opinions and recommendations above are those of individual analysts or brokerages, and are not issued by the mint.

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