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NEW DELHI: Both Indian indices, sensex and Nifty, pared early gains on Wednesday and are now trading lower over weak global cues.
The BSE-bench market sensex is down over 500 points in the post-mid session while Nifty has slipped below 19,100 mark.
The current volatility in the markets can be attributed to the rising global economic uncertainties and the tense geopolitical landscape in the Middle East. These factors have made investors wary, as they can significantly impact market dynamics.
VK Vijayakumar, the chief investment strategist at Geojit Financial Services, said, “Investors are likely to remain cautious until there’s more clarity on the Middle East situation. A notable aspect of the current market trend is the underperformance of the broader market.”
Vaishali Parekh, Vice President – technical research, Prabhudas Lilladher said Nifty tanked heavily with profit booking witnessed once it breached below the crucial and important support zone of 19,500 levels with bears taking control of the situation and overall bias has turned very cautious.
Nifty has so far fallen nearly 2% since October 9, the onset of the Israel-Hamas military clashes.
“The Middle East is likely to be a temporary factor,” said Sanjiv Bhasin, director at IIFL Securities, adding that the strength in domestic mutual fund inflows and festive demand could revive market momentum.
Analysts note that this monthly F&O expiration is also inducing market fluctuations.
Analysis of data analytics indicates that the 19,000 mark is pivotal, with significant put writing observed at this point.
For traders, strategies that have defined risks and offer low-risk income are recommended. It’s advised for investors to gradually gather stocks.
(With inputs from agencies)
The BSE-bench market sensex is down over 500 points in the post-mid session while Nifty has slipped below 19,100 mark.
The current volatility in the markets can be attributed to the rising global economic uncertainties and the tense geopolitical landscape in the Middle East. These factors have made investors wary, as they can significantly impact market dynamics.
VK Vijayakumar, the chief investment strategist at Geojit Financial Services, said, “Investors are likely to remain cautious until there’s more clarity on the Middle East situation. A notable aspect of the current market trend is the underperformance of the broader market.”
Vaishali Parekh, Vice President – technical research, Prabhudas Lilladher said Nifty tanked heavily with profit booking witnessed once it breached below the crucial and important support zone of 19,500 levels with bears taking control of the situation and overall bias has turned very cautious.
Nifty has so far fallen nearly 2% since October 9, the onset of the Israel-Hamas military clashes.
“The Middle East is likely to be a temporary factor,” said Sanjiv Bhasin, director at IIFL Securities, adding that the strength in domestic mutual fund inflows and festive demand could revive market momentum.
Analysts note that this monthly F&O expiration is also inducing market fluctuations.
Analysis of data analytics indicates that the 19,000 mark is pivotal, with significant put writing observed at this point.
For traders, strategies that have defined risks and offer low-risk income are recommended. It’s advised for investors to gradually gather stocks.
(With inputs from agencies)
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