Market Structure Is Still Non-Directional
Global and domestic cues indicate that the market is likely to consolidate in the coming days and start responding to Q4 results as they start coming. So, Q4 results will be the next major trigger for the market from a sectoral and stock-specific perspective
Market monitors developments between Israel and Iran
Mumbai, Apr 4: Global and domestic cues indicate that the market is likely to consolidate in the coming days and start responding to Q4 results as they start coming. So, Q4 results will be the next major trigger for the market from a sectoral and stock-specific perspective.
“Market expects good results from autos, capital goods, telecom and select pharmaceuticals.Financials too will report good results despite some NIM compression and, therefore, are likely to be favoured by investors” says Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
IT results will be tepid and, therefore, the management commentary will be more important than the results. Even though valuation comfort in banking is in PSU banks, private sector majors are likely to deliver superior returns from a two/year perspective.
“On Wednesday, the benchmark indices witnessed a volatile trading session. Among sectors, the realty index declined the most by 2.7 per cent, while the PSU bank index outperformed, rising 2 per cent” says Shrikant Chouhan, Head Equity Research, Kotak Securities.
Technically, after the gap down, the market took support near 73550 and made a bullish comeback. However, it failed to dismiss the level of 75150, which is keeping the market range bound.
We believe the current market structure is still non-directional. Now for the bulls, a fresh uptrend rally is possible only after the dismissal of 75150.
Above that the market may jump to 75500-75800. Below 73550, it may trigger short-term correction towards 73250-73100.Above 47750 Below 47400, it could fall to 47200-47100 levels.
Markets are seen trading higher in early trades owing to overnight gains in US markets after US Fed chairman Jerome Powell said in a speech that he still sees interest rate cuts later this year.
“However, intra-day caution may prevail ahead of RBI policy announcement on Friday and global factors such as rising oil prices and FIIs offloading local shares amid uptick in US bond yields” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd
