IANS | 28 Apr, 2024
Markets are expected to consolidate in the near term as investors focus on Q4 earnings season.
“We
expect a consolidation in the near term, leading investors to seek
refuge in bonds and gold,” says Vinod Nair, Head of Research, Geojit
Financial Services.
Additionally, upcoming US Fed policy and US
nonfarm payroll data will dictate the global market, while the ongoing
Q4 earnings reports are poised to influence the domestic market
dynamics, he said.
Relief from Middle East tensions, coupled with a
correction in oil prices, and a bolstered Indian economic outlook
fuelled by elevated composite PMI data from manufacturing and service
sectors, propelled a market rally, Nair said.
However, the
unexpected decline in US GDP and a surge in the US core PCE price index
triggered a global stock market downturn on the last trading day, he
added.
“The domestic market lagged its Asian peers as Q4 earnings
remained largely subdued, with weak results from IT and a few index
heavyweights also disappointing. The expectation of an improvement in
asset quality and the RBI's regulatory ecosystem for private banks led
the PSU banks to outperform,” Nair said.
Nagaraj Shetti, Senior
Technical Research Analyst, HDFC Securities, said the short-term trend
of Nifty seems to have reversed down after a reasonable rise from the
lows. Immediate support is placed at 22300 and the weakness below this
support could trigger more declines ahead. Immediate resistance is at
22625 levels.