When we speak about factors that has direct impact on nifty future trend, mostly fundamental factor are more responsible then technical factors. Let me share these fundamental factors:
1. Food inflation: Food inflation has been recent challenge for central government, we see whenever food inflation goes high there is always hike in key interest rates. Interest rates hike kills growth of rate sensitive sectors like realty sector, banking sector and automobile sector.
2. RBI Policy: RBI credit policy is also major fundamental factor in deciding for trend of nifty future, when interest rates are hiked nifty future generally crashes.
3. Industrial Production: IIP is the number that is being looked when we say about industrial production, when IIP is below expectation or lower than previous release nifty future goes down for few trading sessions. If IIP is better than the expectation nifty future bounces for some trading sessions.
4. Results: Results here are quarterly and annual, mostly watched are annual results as it shows the performance of a company for complete 1 year. Good results are reason for nifty future to move higher, we are talking about those companies that are included in nifty index. Results lower than expectation can drag nifty future lower also that stock will underperform.
5. Policy Reforms: Policies from government can be very good support for sectors, if they are focused on growth. India is still waiting for some policies reforms to be done to improve the capital flow into the economy.
These factors has direct relations to our stock market so such events must be watched and analysed before taking a medium to long term positions on nifty future.
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