From the Desk - Market & Strategy 18/07/22

 

• NIFTY will remain choppy for the week. The market will look forward to take up cues from 1st Quarter results and forward outlook.  Nifty will remain within the range of 15800 to 16200.
• INR deprecation will also set the market trend and there is a probability of touching the 80 mark or beyond.
• The NIFTY is far away from market consolidation right now since many actions will keep the market range bound.
• Fall in the crude prices is a big optimism for the Indian markets but the upsides of the Nifty might be capped by quarter results and from the fear of U.S aggressive rate hikes.
•  Quality large caps and midcaps results will guide the Nifty levels in this week.   The battle is more between the expectation of negative and realty of the Q1 results which will give direction to the market.
• Monsoon session of the parliament will be playing big role behind the markets in terms of few key bills and any comments from the Finance Minister
•  GST rate hike on several daily essential items like milk, rice, curd, and others will keep the household inflation surged and hence market might take some small cues of downside from the same.
• Global markets will also keep a tab on the key quarterly results and the impact of inflation on cost and outlook on forward earnings. More focus will be on the consumer demand projections for the coming quarters.
• All eyes will on the ECB for the rate hike after a decade.  Further apart from ECB the People's Bank of China, the Bank of Japan, Bank Indonesia and the Central bank of Russia will hold monetary policy meetings. This will also guide the global markets. The forward outlook and any aggressive rate hike will build pressure on the global market
• Mutual NFO’s are getting started and hence fresh inflow of Funds can be expected in the market in this month.

Conclusion:

This is best time to invest in quality large caps and midcaps.  Strictly follow the asset allocation and risk profile and don’t opt for leveraging beyond.

Every fall in the market is a n averaging options hence avoid investing in one go and split the same in multiple tranches to take advantage of the market.

Active investments should be opted for long term wealth creation.