How does the increase in Diesel price affect the market?

[JackPotter]

Hello experienced traders,

Today I read in the newspaper that government has increased the diesel price by Rs. 3 from Friday mid-night. It will cross Rs. 40/lt. mark first time in the nation's capital, New Delhi. Also, the LPG, Kerosene oil prices have been increased too. I guess these developments will not help curbing the inflation in near future.

So, what's your view on the market in the coming week, especially on Monday? Are we going to see Nifty in a big Red or sideways or Green?

I'm asking this because I've never noticed earlier if the increase in diesel, petrol price, etc affects the market.

Are you the one who has noticed any trend repeating after these developments? If yes, please share.

 

[2021]

Last time in Feb during budget 2010 and in June 2010 after price hike market went up on mondays (note both hikes in diesel were done on friday). June's price is almost identical as it was than diesal, kerosean and LPG prices were hiked. Nifty on 26 June, the night hike took place was at 5269 and on monday 28 June it touched a low of 5259 and closed at 5333, 6 points down intraday high of 5359. The trend that time was sideways as from 18th June to 18th July market was in tight range of 160-165 points were nifty saw low of 5235 and high of 5400 on closing basis. PS - inflation concern was not much that time as it is now. Historical data is no way trend setter and market finds it's own way of moving.

 

[tradoholic]

Nifty will be open in negative zone and i anticipate(not predict) nifty will down 50 pts.
reason : dow and s&p closed -ve, inflation concerns, Diesel price hike
buy nifty put ( intraday ) : recommented

 

[shubhamchugh]

Nifty will be open in negative zone and i anticipate(not predict) nifty will down 50 pts.
reason : dow and s&p closed -ve, inflation concerns, Diesel price hike
buy nifty put ( intraday ) : recommented

Lo kar lo baat

 

[JackPotter]

Looks like increase in domestic oil prices give some steam to the Oil companies stocks which results in exciting the banking sector too. Next time we'll trade positively and document it here again.