Dear patrons, the Indian markets have been extremely volatile over the last few days. Big moves on either side intraday have become a norm amid rising vix. During this volatile phase both the benchmark indices on the NSE along with the Sensex have managed to touch record high levels.
Global markets have also been quite volatile gaining smartly and losing sharply during intraday sessions. The US markets reacted to the FED policy meet outcome by losing sharply one day and recovering all lost ground in subsequent sessions. The FED looks in no hurry to cut interest rates owing to high inflation. Higher interest rates have caused the economic growth to slow down in the US leading to a global slow down.
Geopolitically, world is a much quieter place compared to two weeks back. Middle East is relatively calm rendering crude oil cool off from recent up move. Precious metals, after gaining smartly over last month or so have also seen profit booking.
Domestically, we are in the middle of the World's biggest elections, which are moving smoothly so far. In a month from now a new Government will be in place in India. Indian economy has remained resilient and has been growing at a fast pace, cashing in on demographic dividend with local demand outweighing global demand. Trend for Indian economy is likely to remain in the upward trajectory placing it among top three in near future.
Let's now have a look at what happened in the markets over the last week and what lies in store for coming week.
In a truncated week Nifty managed to scale yet another peak in the vicinity of 22800. It lost considerable ground every time Nifty tried to go past 22800. For the time being it looks like Nifty will spend some time consolidating in a tight range of 22300 to 22800. A close below 22300 may lead to further fall in Nifty towards 21800, which should act as a strong support.
BankNifty also managed to make a record high last week, although it remained subdued compared to Nifty. BankNifty faces resistance around 50000 mark. It may as well spend some time in the range of 48800-50000 levels. In the event of close below 48200 it should find strong support around 47000 range. Till the time BankNifty is able to hold its head above 48200 it remains "Buy-On-Dips".
Other than the benchmark indices many sectoral indices along with midcap and small cap indices have touched new record high levels. Midcap index looks set for gaining some more with a support around 50550 level. 49800 should act as strong support for Midcap index.
Record collection of GST for the month of March is an indicator to the growth that the Indian economy is witnessing. Rising consumer demand and capex in infrastructure by the government should lead to more growth in coming months, outpacing global peers comfortably, India is marching towards $5 trillion economy.
Investors should try to accumulate fundamentally good stock with every fall. Traders have to be nimble footed and adhere to strict stop losses in these volatile moves. There is ample opportunity available in the market for traders.
Stay Invested!!!
P.S.: This communication is for educational purpose only and does not recommend buying or selling any stock or index. Trade at your own risk.
