Is the stock market booming in the spring of 1401? / Strengths and weaknesses of the stock market
According to Tejarat News, the publication of monthly reports and the announcement of the profitability of industries is a testament to the value of the stock market. But these days, the low volume and value of transactions in the stock market has brought a volatile and stagnant trend for the stock market, and these days the question of shareholders is when the stock market will finally get out of this trend.
Salman Nasirzadeh, a stock market expert, said: “The market is at a minimum level in terms of transactions and purchasing power, and there is still no signal for the market to return.” The main feature of the stock market these days is the limited price fluctuations, the continuation of the erosive trend of trades and the reduction of the volume and value of trades, and the same trend will continue tomorrow.
He continued: “Among the weaknesses of the market, we can mention the trading components.” Trading value, purchasing power per capita and trading volume are at a minimum level. Uncertainties have also affected the market. The Borjam talks are continuing and news of the progress of the talks is promising. This issue has reduced the dollar from 30,000 tomans to 29,000 tomans. The review of the budget bill by the parliament will begin soon and we expect nothing negative to happen to the industries.
Nasirzadeh added: “One of the strengths of the stock market that gives us hope for the coming days is the publication of monthly reports leading up to December.” The cumulative performance of the autumn season shows the improvement of the companies’s IP trend compared to the previous season. Due to the fact that prices have also been decreasing, the share of shares is at a minimum level compared to summer.
Where is the overall index support range?
“Quarterly reports are on the way and we are approaching the end of the companies’ fiscal year,” he said. The stock price of most industries is cheaper than profitability. The total index has a support range of 1,360,000 units and we expect the market to fluctuate at the level of 1,360,000 units to 1.4 million units, and this stabilization will bring the market psychologically to support levels. With the release of quarterly reports, gradually and in a 6-month outlook, we will see the stock market situation improve and exit from these levels in the spring of next year.
He stated: Another positive point of the market is the half exchange rate, which is tending to be 25,000 Tomans. This affects the exchange rate of companies. Petrochemical, steel, mining and cement companies are in a good position in terms of profitability. Banks and insurance are also expected to benefit from the exchange rate in the coming seasons, and based on seasonal performance, a better lead is expected for these groups.
Nasirzadeh said: “In general, the market is at significant levels, but the lack of support from traders, activists and legal institutions has stagnated the market.” Tomorrow’s market is also volatile, but one expects the market to distance itself from these levels and growth. Correction is now a correction, not a price.
Read the latest stock market forecasts on the Forex Trading Forecast page.