From the Desk of the Editor Investments/ Economy/Markets Outlook -(Week 16 to 20th August 2021)

Investments/ Economy/Markets Outlook -(Week 16 to 20th August 2021)

NIFTY 16500 levels may not sustain and will look for new cues to go up. 17000 Nifty levels are still awaited. 

Some form of consolidation in the market cannot be ruled out at the same time profit booking at higher levels and rebalancing of asset allocation cannot be ruled out.

The geopolitical issues create significant weightage on the market direction for the week.

Any worst situation arising from Afganisthan might create a mild impact on the market which is nothing but an opportunity to invest. 

Till now the majority of India Inc's first-quarter earnings were stronger-than-expected which kept the market momentum alive.

Currently now and in the absence of a major event, global cues are expected to guide the market direction.

Gold prices will go up and debt market yields will remain extensive volatile.  

Covid vaccination and Delta Variant will guide the direction for the U.S markets

As for the data, the market focus will be on retail sales and industrial production for the U.S and other business-consumer index numbers will direct the markets.

Macroeconomic data from China might keep the Asina markets volatile which will keep Indian markets under consolidation mode.

Back at Home Indian markets will find IPO Listing and investors making gain and making exit bets based on short term investment plans.

Unlocking and unwinding of the economy like the new rule of Maharashtra for Mall & Restaurants etc. will play boost up for the economic number and markets. They will guide the market momentum  

We have a holiday in the mid of the week hence we have 4 trading sessions in the week.

Indian markets have enough positives to keep the momentum alive like  the Index of Industrial Production (IIP) for June showed a rise of 13.6 per cent from a decline of (-) 16.6 per cent reported for the like month a year ago.

Further, data furnished by the National Statistical Office (NSO) showed that the Consumer Price Index (CPI) slipped to 5.59 per cent last month from 6.26 per cent in June.

Hence keep the long term equity allocation one should go ahead for investments in STP format spreading not more than 6 months.  

Large Cap and Midcap both will be key gainers for the market in the long term.  We had a healthy monsoon and festive season around the corner which spooks the consumption and demand married with unlocking.

One should follow the asset allocation and its risk profile and avoid herd mentality while investing.