Weaker monsoon impacting mkts

New Delhi: Increasingly the market is showing signs of weakness driven by weaker monsoon, stronger dollar and Put-Call ratio (PCR) has breached 1.4 for Wednesday, says Jaykrishna Gandhi, head (business development- Institutional Equities), Emkay Global Financial Services.

“For the first time in the past few months, we are seeing some rationality coming in amongst mid/small-caps. However, consistent inflows in mid/small-caps can protect downside in the coming months,” he added.

Oil prices are increasingly getting more attention on the back of Saudi extending its 1mn bpd cut until the end of CY2023. This, if it coincides with any recovery in China, can ensure crude prices continue to move up which will be detrimental to important dependent countries like India and will further result in a stronger dollar, he said.

Immediate support lies at 19,430 with strong support at 19,230 points. If we break 19,600 with confidence then the uptrend should be reinforced to take us to 20K, he added. VK Vijaya Kumar, Chief Investment Strategist at Geojit Financial Services, said that for the near term, there are mixed cues for the market.