2 Key Events to Dictate Nifty 50 Trend Next Week!

  • Stock Market Analysis

So far, the index seems to be in pretty good shape, despite a small correction on Friday. It does not seem to be worrisome yet and should be taken as a healthy correction after a massive run-up. However, the next week could throw some surprises, on account of two key events which the market participants would be setting their eyes on.

RBI MPC

The Reserve Bank of India is set to commence the last monetary policy committee (MPC) meeting of the year, from 5 - 7 December 2022. As what has been the trend of the year so far, a rate hike is almost confirmed, the only question is by how much. Despite going quite aggressive in increasing interest rates this year, inflation is still hovering over the 6% mark for over 10 months now. The RBI tries to contain inflation within a 2% - 6% tolerance band, so clearly, pressure on it to keep the rate hikes intact would be there.   

However, the good part is, inflationary pressure has also started to ease. The CPI data for October 2022 came in at 6.77%, which is noticeably down from the preceding month’s CPI of 7.41%. In fact, US inflation dropped to 7.7% in October 2022 which is the lowest since 7.9% in February 2022. The recent plunge in crude oil prices on account of newer restrictions in China amid rising Covis-19 cases, is the icing on the cake. 

Another reason for the RBI to suppress its aggression is the recent GDP numbers. The July-September 2022 quarter recorded YoY GDP growth of 6.3%, compared to 8.4% in the same period a year ago and 13.5% in the previous quarter. As a rate hike is a two-sided sword that tames inflation but at the cost of a hit to GDP, we would likely be seeing a slowdown in the rate hike amid the previous 3 consecutive 50 bps hikes. A consensus of economists is expecting around a 35 bps hike this time.  

Gujarat election results

The second big event for the market to digest would be the election result of Gujarat. There’s no doubt that the market would be cheering to the BJP’s clean sweep, while BJP’s loss might result in a decent correction in the indices. It’s quite difficult also to throw the BJP out of the ring in Gujarat, by any party, and this is probably what is currently being discounted by the markets - A thumping victory. 

Aam Aadmi Party could be a tough contender this time, especially after their victory in Punjab, but still, the craze for PM Narendra Modi in Gujarat is unmatched. While for Congress, it might be able to make some impact after its Bharat Jodo Yatra, but probably not enough to come into power. The result would be announced on 8 December 2022. Hence, the next week could be volatile and traders should remain cautious.

PS: I am not affiliated with any political party :)

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
  • Diptapratim MidyaChowdhury @Diptapratim MidyaChowdhury
    Aayush ji... aap ka style bohot alag heyyy... jabardast... carry on... ☺🙏
    Like 0
  • Ravi Chandran @Ravi Chandran
    Good
    Like 0
  • Jadhav Sunil @Jadhav Sunil
    Good
    Like 1
  • Hardev Krishan Verma @Hardev Krishan Verma
    good information
    Like 1
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      Thank you Hardev :)
      Like 0
    • Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

      Error: File type not supported

      Drop an image here or

      100
  • debasis Biswas @debasis Biswas
    bjp bjp bjp
    Like 0
  • Dr Mahesh Nath @Dr Mahesh Nath
    good analysis
    Like 0
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      Thanks Dr :)
      Like 0
    • Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

      Error: File type not supported

      Drop an image here or

      100
  • Satyam Naidu @Satyam Naidu
    coming events very good soon
    Like 1
  • Ajay Shukla @Ajay Shukla
    indication of coming events good
    Like 1
  • aarti dhonde @aarti dhonde
    Thanks Bro For Good And Future Event Information...
    Like 1
  • namami ghosh @namami ghosh
    one lovely reader here..moi... wants to thank you for yet another excellent article... lol
    Like 1
  • Karthik Suryanarayanan @Karthik Suryanarayanan
    I have 19000 ce of monthly expiry , monthly contract ,
    Like 3
  • Harshit Jadhav @Harshit Jadhav
    nifty daily chart candles making a morning Star
    Like 5
  • Vikky Donar @Vikky Donar
    superb analysis sir 💓👏👏👏
    Like 1
  • vijay kumar @vijay kumar
    I have 43100 CE in Banknifty
    Like 4
    • Raj Kumbhakarna @Raj Kumbhakarna
      gap down
      Like 0
    • Ankit Patel @Ankit Patel
      gap up bro
      Like 1
    • Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

      Error: File type not supported

      Drop an image here or

      100
  • Kedar Modi @Kedar Modi
    i have 18700 CE for 8th December expiry
    Like 4
  • Kedar Modi @Kedar Modi
    I have 17700 CE let's see
    Like 2
  • PRATIK MADTHA @PRATIK MADTHA
    I bought 19500 ce option for this coming week expiry hope the market goes up
    Like 7
    • Bujjigadu Guduru @Bujjigadu Guduru
      if 19500 possible take long straddle better
      Like 0
    • Manoj kumar @Manoj kumar
      Or close long by Monday evening 3 pm
      Like 0
    • Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

      Error: File type not supported

      Drop an image here or

      100

Related Articles