Top 5 factors that may impact stock market next week.

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Positive global indications helped the Indian stock market close higher on Friday for the day and the week, although lower than usual volumes may have indicated that FPIs, who have been unrelenting sellers in Indian markets, were not as active.

Stock market experts claim that the US GDP shrank in the first quarter and that it will likely decrease to practically zero by the second half of the year, signaling signals of economic crisis. Factory activity remained subdued in June across all areas, according to recently released statistics from Japan, Britain, the Eurozone, and the United States.

Due to unfavourable macro events, global markets have declined. There are concerns about a slowdown in global gross domestic product growth, along with high inflation, supply-chain issues across commodity groupings, and high-end goods (semiconductors and active pharmaceutical components).

Sensex, Nifty, and Share Prices Today’s Share Market News Highlights: Concerns about inflation and the Ukraine situation caused a decline in Indian equity markets.

For the second day in a row, benchmark indices declined on Friday. The Nifty 50 was down 532 points or 3.06 percent at 16,842.80 at closure, while the Sensex was down 1,747.08 points or 3.00 percent at 56,405.84.

All of the sectoral indexes finished in the red, with declines of 2–6% in the auto, bank, oil & gas, PSU Bank, pharmaceutical, FMCG, metal, real estate, and capital goods indices.

BSE Midcap and Smallcap indices declined 3–4% on the overall market. Top Nifty losers were JSW Steel, HDFC Life, ITC, Tata Steel, and Tata Motors, while TCS was the lone gainer.

With losses in Oil & Gas stocks, PSU Banking stocks, and metal stocks, benchmark indices recorded their worst day in nearly 10 months since February 14, 2021. The Sensex dropped 1747 points or 3 percent to close at 56,406 while the Nifty lost 532.95 points or 3 percent to close at 16,842.8.

The Sensex dropped more than 2,500 points in the previous two sessions. Since December 22nd, 2021, the Nifty 50 Index has not closed below the 17,000 mark.

On the daily chart of the Nifty 50, a bearish candle was created with the index managing to close a day below a decent support level of 17,000; if the index remains below this level, further declines might occur, possibly reaching another support level on the downside around 16,500-16,200. “The volatility measure index increases by 22.97% to 22.97.

Oil prices may rise even further, which would be bad for India, if the conflict between Russia and Ukraine worsens or if the US imposes any reprisal penalties.

Additionally, the larger market confirms a correction, and as a result, the market’s breadth favoured bears. TCS, up 1.05 percent, was the top gainer in the 50-share pack. JSW Steel, which fell 6.68%, was the group’s biggest loss. Other losses in the group included HDFC Life, ITC, and Tata Motors Bank.

16,800 is a key support level for the Nifty 50, and 17,200 may present some challenges.

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