According to V.K. Vijayakumar, the Chief Investment Strategist at Geojit Financial Services, the US 10-year yield, which is now hovering around 5%, continues to be a barrier for equities markets.
Although the market now pays little attention to the unstable situation in West Asia, he said, this might provide more difficulties in the near future.
According to Vijayakumar, FPIs are expected to continue selling banking equities, which make up the majority of their AUM. This presents a chance for domestic investors to acquire these stocks, which are offered at reasonable prices.
According to the most recent statistics, India’s output of food grains is at an all-time high, which may help to curb food inflation. According to him, this implies that the MPC would take a protracted break, which is good for banking stocks.
According to Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, Nifty failed to move past the resistance levels of 19,850 zone once more before finally slipping in with heavy profit taking seen to slide below the 19,700 zone with bias turning weak and sentiment maintained with a cautious approach.
Technically, the index would have the short-term support zone of 19,600 levels of the crucial 50EMA zone breaking, which can be anticipated for more selling pressure with the next major support seen at 19,200 zone, as previously said.
According to Parekh, the resistance for the day is at 19,800 levels and the support is at 19,500 levels.
On Friday, the BSE Sensex is down 164 points at 65,464 points. HUL is down more than 1%, while ITC is down more than 2%.
