InvestorQ : What could be the key triggers that could drive the Nifty and the Sensex in the coming week?
shrinidhi Rajan made post

What could be the key triggers that could drive the Nifty and the Sensex in the coming week?

Answer
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Riya Dwivedi answered.
1 year ago


The coming week will be a truncated week with markets shut on Monday due to elections in Mumbai and again on Wednesday 01st May on account of May Day and Maharashtra Formation Day. Hence we will only have 3 full days of trading for the coming week.

Key factors that could influence markets in the coming week

Some of the key factors that could influence the market in the 3 days of trading next week can be enumerated as under:

· Crude oil will be a key factor in the coming week. The price of Brent Crude touched a high of $75.60/bbl but retreated closer to $72/bbl on supply worries. Markets will be happy with crude prices under the $75 mark.

· Earnings will be the key driving force this week with big names like Kotak Bank, Ambuja Cements, Britannia, Tata Power and Hindustan Unilever expected to announce results.

· Some important growth macros will be announced this week and they include the PMI manufacturing and PMI Services, core sector data, fiscal deficit data and the auto monthly sales numbers.

· Fed meeting will conclude on Wednesday and the rate decision will be announced late on Wednesday (India time). The global markets are building in status quo on rates but the language will be crucial; neutral or dovish will be the key.

· Rupee will be another key factor to watch. The dollar swap auctions have put pressure on the INR which has weakened beyond the 70/$ mark. This could be the key to the next week as FII flows may hold back if the rupee weakens too much.