Friday, July, 26,2024

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SIGNS OF CONTINUED UPTREND ARE BEING SEEN

Now that the formation process of the new government in the country is complete, the stock market is on a bullish trend. On a technical basis, the market is now expected to continue to rise, the biggest basis of which is the purchases made by foreign institutional investors-FIIs and domestic institutional investorsDIIs last week, but despite this purchase of thousands of crores, there was no comparative rise in the stock market on the weekly level and the BSE index and NSE index closed superficially higher. It is believed that the current level of the Nifty index is technically predicting a boom in the market, in which the possibility of decline is considered only after 23200 points. The basis of future uptrend in the stock market is believed to be the strength of the stock market at the international level, but the slow progress of monsoons in India remains an obstacle to this.

Similarly, if there is any decline in the market due to the monthly closing of the futures market on the coming Thursday, then it is being considered as a new investment opportunity. The biggest trigger for the stock market is the Union Budget coming next month, about which it is being speculated that to woo its middle-class voters, the government may make an announcement regarding the limit of income tax exemption. Apart from this, the proposal to bring petrol and diesel under the ambit of GST can also be the announcement which has been awaited in the country for the last 7 years. It is also being speculated about the Union Budget that due to the coalition government, there are less chances of tough decisions in the upcoming budget, which is sure to have a positive impact on the stock market.

However, after the trading session ended on Friday, the BSE index improved by only 217.13 points (0.28%) last week and closed at 77209.70 points, while the NSE Nifty index rose by 35.50 points (0.15%) and reached 23501.10 points. Despite the superficial rise in the BSE index and NSE index, the midcap and smallcap index remained quite strong, which is also pointing towards the future trend of the market. The increasing confidence in the Indian stock market can also be seen as evidence of the purchases made by foreign institutional investors (FIIs), who had been selling till now, who bought Rs 9102.87 crore last week, although the purchases of domestic institutional investors (DIIs) were much higher than FIIs with Rs 9574.93 crore. The special thing is that in the month of June so far, FIIs have sold shares worth Rs 2584.72 crore, while DIIs have bought shares worth Rs 21447.02 crore. Talking about the bullion market, this week due to new international equations, there was almost stability in the prices of gold & silver, and comparatively, while the price of gold fell by Rs 350 per 10 grams this week, the price of silver increased by Rs 350 per kg. In Jaipur, the price of 24-carat gold fell from Rs 73,850 per ten grams to Rs 73,500 per ten grams & silver increased from Rs 90,900 per kg to Rs 91,250 per kg. Traders are expecting stability in the prices of gold and silver this week as well. Regarding the market trend this week, traders say that there are high chances of the market seeing a bullish phase, but negative international factors will have an impact on the market. According to traders, in the current circumstances, listed companies of public sector undertakings along with companies associated with infrastructure projects such as railways, defense & cement, etc. are considered strong. They say that even if the index keeps fluctuating, certain stocks will definitely move.

THESE ARE THE PERSONAL VIEWS OF THE AUTHOR. THE AUTHOR, HIS FAMILY & ACQUAINTANCES MAY INVEST IN THE COMPANIES MENTIONED IN THE ARTICLE. BEFORE MAKING AN INVESTMENT DECISION, PLEASE TAKE EXPERT ADVICE ABOUT THE COMPANIES MENTIONED IN THE ARTICLE.

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