- What is next for the nifty 50 index. check the technical analysis and the key fundamental factors affecting its price movements nowadays
During this week, indian markets witnessed a strong up move with benchmark indices gaining more than 4% in the last 4 sessions. Let’s see the main factors driving Monday’s rally:
- a ceasefire agreement between India and Pakistan
- The optimistic announcement related to the US-China trade deal.
- news of upcoming Russia-Ukraine peace talks scheduled for May 15.
Starting from this week, the market marked a strong note and generated a breakout above the consolidation range (24500-23848), which indicates to resumption of the move up.
On Tuesday, the Nifty 50 witnessed profit around the psychological levels of 25,00 and tested the breakout area of 24,500 on Wednesday. However, the Nifty 50 resumed its up move and reached a fresh weekly high of 25,116 on the Thursday session.
Technical Levels of the Nifty 50 index:
Technically, the bullish trend is highly recommended for the Nifty 50 index. Any clear daily close above the resistance level of 25284 may open the door for the buyers to push the prices toward the 25500 level in the coming weeks, which will open the way to reach 25750, because the levels of 24500 and 24400 are likely to act as key support.
On the flip side, if the price can not keep its power above 25000 levels, they may open the way for the prices to reach lower levels because in this case, the 24800 level will act as strong resistance instead of being support. This may bull the Nifty 50 downward to the support level of 24500.
Key Fundamental Factors Affecting the Nifty 50 Index:
Macroeconomic factors:
GDP Growth: The higher the GDP growth rate, the more the potential to lead corporate earnings to increase, and thus, this will positively impact the Nifty 50 index.
Monetary policy of the Reserve Bank of India: The higher the interest rate, the higher the borrowing costs for companies, and it also reduces consumer spending. So the appetite to risk will be lower, and stock investment will be less attractive to investors, so it will negatively affect the Nifty 50, and vice versa.
Corporate Earnings:
The overall profitability and growth of the companies listed in the Nifty 50 affect the price movements of the index. If the companies have a positive profitability ratio, this may affect the index positively and vice versa.