Stock market forecast on Tuesday, July 20, 1402 / Dusty image of the stock market – Tejaratnews

According to Tejarat News, in the middle of the week, in the shadow of the official announcement of the feed rate increase for the petrochemical and refining industries, the Tehran Stock Exchange displayed another integrated red map. In the market of Dushanbe, more than three quarters of the symbols stood on the negative side of the fluctuation range. It got to the point where the supply flow put a lot of pressure on a symbol like Arfa, which has published a favorable quarterly performance report.

In the current situation, the performance reports that indicate the jump in profitability of companies can play an important role in adjusting their P/E. This, in turn, makes the stock valuable at current prices.

At the end of trading on Monday, the total index faced a drop of 17,829 points, which is equivalent to 0.82% of this index. Based on this, the results of the transactions caused the total index to stand at the level of two million and 158 thousand units.

Also, the equal weight index behaved in line with the total index and reached the level of 760,857 units with a decrease of 1.29%.

Tehran Stock Exchange under the microscope of statistics and figures

The board of the Tehran Stock Exchange shows the volume of Sunday’s transactions at 10 billion shares and the value of retail transactions at 6,788 billion tomans, which includes stocks, preemptive rights and mutual funds.

Investigating the ownership statistics of real people indicates the withdrawal of real people’s capital from the stock market. The index of capital inflows and outflows at the end of Sunday’s stock exchange reports the outflow of 848 billion tomans from shares, preemptive rights and mutual funds.

Stock market: Valuable but unmotivated

During the mid-day trading of the third week of July, 157 symbols ended their work in a negative range between two and three percent. In general, almost half of the market shares were in the range of zero to minus three percent. This shows that the market has identified valuable shares in the current situation, but there is not enough motivation to buy.

The root of this lack of motivation should still be found in the margins related to the government’s recent decree. The policymaker’s insistence on increasing the feed and fuel rates of petroleum refineries has planted fear in the hearts of investors and market people about the occurrence of a similar event in other industries. The systematic risk of people’s decisions, especially when the politician’s ears do not listen to protests, has become a barrier in front of the stock market these days.

Although the decision to increase the feed rate of petroleum refineries was not the first time that after promulgating the laws, the policy maker decided to change them; In February of last year, strange circumstances and sudden decisions of the Competition Council during the banning of the sale of high-volume cars in the Kala Bazar stock market, which was on the rise, took it to the correction phase.

However, after the recent scandals, there is no assurance from the shareholder regarding the repetition of this incident in other industries. This means damage to investment security and the fall of general shareholder confidence in the market.

Stock forecast for Tuesday

The trading process of the middle day of the week started from the beginning with selling pressure and this issue continued until the end. On the other hand, a look at the list of symbols that have lined up to buy shows that a large part of this list are stocks that are in the base market.

This fact confirms that people of the capital market go to the small stocks of the basic market due to the decrease in the confidence of the policy maker’s decisions. In addition to the smaller market shares, the announcement of a 30% increase in the price of Bahman Motor Company’s products will also affect the trading of the automobile group on Tuesday, and it is expected that the power of supply in this group and perhaps the market as a whole will decrease.

Also, checking the total index chart shows that the market trend has moved in the form of an opening triangle (trumpet pattern) since June 23. The failure of the index from either side of this triangle can determine the market’s continuation path.