FII flows among 5 key factors that may steer Nifty above 18,000 this week

Global markets also edged higher this week as investors reevaluated monetary policy outlook after ultra-hawkish comments from the Fed chair, while the energy crisis in Europe continued to haunt investors.

Vinod Nair, Head of Research at

said that the direction of the market in the week ahead will be determined by cues from the global markets as well as important macroeconomic data points, such as inflation and manufacturing & industrial production data, to be released next week. Domestic retail inflation is expected to rise to 6.9 per cent in August from 6.71 per cent in July.

Here are the triggers for equity traders this week:


FII flows
Foreign institutional investors (FIIs) remained net buyers in the capital markets, as they purchased shares worth Rs 3,837.56 crore this week. FII inflows have been one of the key reasons behind the recent rally in the equity market.

Macros
India surpassed the UK to take over as the fifth-largest economy in the world after posting real GDP growth of 13.5 per cent in the June quarter. India’s industrial production and inflation data will be released on Monday. Experts are expecting a fall in inflation after the steep fall in crude oil prices.

Crude oil prices
Crude oil prices have come down recently, with crude oil prices closing at $92.19 a barrel on Friday as compared to $95.74 a barrel on Monday. On Wednesday, crude oil closed at $88, its lowest level since early February, boding well for economies like India, which import most of their energy needs.

Dollar Index
One of the top concerns for investors is the spike in the US dollar index to above 109 level, which may affect FII flows.

Global Factors

Market participants will be watching global markets for positive signs, such as UK GDP data for September 12, continued FII inflows and renewed efforts by Chinese policymakers to strengthen their economy.