‘Triple danger’ looming over Indian markets in the near-term

NEW DELHI:

There is a ‘triple danger’ looming over markets in the near-term: dollar index above 105, steadily rising US 10-year bond now around 4.39 per cent and the Brent crude above $94, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

These are significant macro risks which the market cannot ignore for long. FIIs refraining from big selling is because of the FOMO (fear of missing out) factor, he said.

Investors should exercise caution, particularly in the over-heated mid-and small-cap segments. Safety is in large-caps, he added.

The participation of large-cap bluechips across sectors has been giving strength to the rally which has taken the Nifty well above 21,000 level, he said.

The fact that the fairly valued banking segment has been a significant contributor to the recent rally also is a positive development. PSU banks like BoB, Canara Bank and Indian Bank are even now attractively valued, he added.

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said Nifty index continue to record new highs touching the 20,200 levels during the intraday session and is poised for further gains in the coming sessions with near term-target expected till 20,300-20,350 zone.

The broader markets once again are regaining strength with significant participation visible from the mid-cap and small-cap counters supporting the index for further gains. The support for the day is seen at 20,100 levels while the resistance is seen at 20,350 levels, Parekh said.

BSE Sensex is down 155 points at 67,682 points. Infosys, HDFC Bank, Wipro are down more than 1 per cent.


INDIA    NEW DELHI    NEW DELHI    BUSINESS    Market    Corporate    Share market   
BUSINESS    Market    Corporate    Share market   
BUSINESS    Market    Corporate    Share market   
BUSINESS    Market    Corporate    Share market