stock market
The month of July can bring great news for stock market investors. Dalal Street is expected to bounce back amid positive signs like falling crude oil prices, stable rupee and easing global tensions. Market experts believe that after the sluggish business of May and June, Nifty can now make new records. Statistics also testify to the fact that this month has often proved to be very auspicious and profitable for the Indian equity market.
Statistics of last 10 years are indicating profit making
If we look at the data of Motilal Oswal Financial Services, it shows that the market has not disappointed investors during July in the last decade. Nifty and Nifty 500 indices have closed in profit eight out of the last 10 times this month. During this period, investors have got excellent returns ranging from 3.1 percent to 3.2 percent on an average. Not only big companies, but also small and medium stocks are in the same situation. Bloomberg data shows that Nifty Midcap 100 and Nifty Smallcap 250 have also filled the pockets of investors eight out of the last ten times.
3 big reasons taking the market to new heights
According to Sriram Velayudhan, Senior Vice President, IIFL Capital Services, there are many strong reasons behind this. The biggest reason is the huge fall in the prices of crude oil (Brent crude). Crude oil, which was around $95 per barrel at the beginning of the month, has fallen to $74 on Tuesday. This is the third consecutive month when crude prices have fallen. Apart from this, there has been a decline in selling of shares by foreign investors and the ongoing US-Iran peace talks in Doha also seem to reduce geopolitical tensions. The improving condition of monsoon can also prove to be a big booster for the domestic market.
What will be the next target of Nifty?
Chandan Tapadia, Head of Technical and Derivatives Research, Motilal Oswal Financial Services, estimates that if the old trends continue, the benchmark Nifty 50 may jump further by 500 to 700 points or about 2 to 3 percent from the current levels. He believes that both Rupee and Crude are now becoming stable, hence any small fall in the market will be seen as a great buying opportunity by investors. This can provide a direct path for Nifty to move towards the range of 24,500 to 24,750.
Read this also- Market returned, investors earned Rs 2 lakh crore in a single day, Nifty crossed 24 thousand
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
