Tomorrow’s stock market forecast/inflation makes the stock market bullish?

According to Tejarat News, the total stock market index experienced a 0.6 percent drop of 9,701 units and reached the level of 1,463,000 units. Also, the total equal weight index recorded a drop of 1.1 percent and reached the range of 400,000 units.

This drop in the total equilibrium index is a bit dangerous. That is, if the index has a downward trend tomorrow, the total equal weight index will enter the channel of 300,000 units. The decline of this index is more important and vital for shareholders than the decline of the entire stock market index. Most of the capital market experts believe that with the change of the equal weight index channel, the downward path of the stock market will remain.

On the other hand, the interbank interest rate is experiencing an increasing trend. It is true that this rate does not have a direct effect on capital market transactions, but it has psychologically made the market negative. The interbank market rate reached 21.31 today and recorded an increase of 0.17% compared to the past.

What factors affect the stock market?

In a conversation with TejaratNews, Barzo Haqshanas, a capital market expert, said: The trading process of the stock market tomorrow is also balanced and fluctuating like today. When the capital market does not increase in volume, we cannot expect anything from it. The capital market is in shock in the short term.

He stated: The real interest rate has become more negative due to inflation. The market reacted to the interbank interest rate in the short term. The stock market overreacts to various issues. That is, it overestimates the events of the market margin.

This capital market expert continued: In the long term, the capital market will appreciate the lag behind inflation and industry reports. Currently, the p/e forward of some stocks has reached less than three. But most of Iran’s growth has been a reaction to inflation.

Haqshanas explained: After the effects of short-term actions of the market have passed, the stock market compensates for its lagging behind the market. Of course, this is the compensation of the situation in the next year and we can hope for the growth of the stock market in the next year.

He said: Financial markets are going back and forth between optimism and pessimism. Now, the stock market has gone from the extreme optimism of 2019 to the extreme pessimism of 1401.