Investments/Market/Global Economy outlook for 21st July 2022-

 

  NIFTY is taking cues from the quarterly results and the strong outlook in terms of revenue from key sectors and companies.

Ø  Industrial inflation is coming down due to a fall in metal prices etc which adds momentum to the indices in terms of earnings outlook for the coming quarters.

Ø  Inflation is the biggest concern but it seems the worst is behind us and most of the pain is already factored in by the market.

Ø  The downside of the Nifty levels is capped now at 16200 levels to 15800. Don’t expect a sudden surprise based on the rationales currently in hand.

Ø  Coming to global markets U.S markets are rallying due to healthy corporate earnings. The markets are portraying that the bear market has “BOTTOMED”.

Ø  U.S market will keep a close eye on the FED decision related to interest rates. 

Ø  The EIA report showed a supply increase of 3.5 million barrels for gasoline, while distillate stockpiles fell by 1.3 million barrels. The analyst survey called for inventory gains of 400,000 barrels for gasoline and 800,000 barrels for distillates.

Ø  The biggest worry for the global markets will be the China mortgage-related issues. China's property sector is causing worry in economic circles as homebuyers of around 100 projects across 50 cities have decided to stop paying mortgages for unfinished homes after prolonged construction suspension.

Ø  Inter linked business and trade might impact the global finances and might turn out to be small carnage for the Chinese economy.

Ø  They might come up with a stimulus package for saving the real estate sector.

Ø  Europe on the other hand is struggling with energy supply issues and long-term problems of rising inflation.  They will keep the global markets volatile.

Ø  Back home the markets will remain volatile and don’t find a major correction to happen. It would rather be a range bound and consolidation based.

Ø  Investors should stick to their risk profile and avoid leveraged bets. STP/ SIP should be the best way of making an investment.

Ø  Further investing in PMS should be taken forward where risk management of stock is beyond one's risk profile.  STP option in PMS investment should have opted.

 Disclaimer:  All the above rationales are based on the current scenario and it is more of a knowledge and opinion based.  One should check his risk profile before taking investment calls.  Equity is a long-term investment.