Technical Analysis: Nifty down, but not out

Unlike the global economy India would not slow down and maintain the pace of expansion achieved in 202223 an RBI article said on Tuesday

With global economic uncertainty persisting, and central banks around the world continuing to provide liquidity to the markets, it is expected that there will be positive returns for investors in the near future, even in the event of a correction. While there are still some risks to consider, such as regional banks in the US, overall, the global economy is doing well. Indian earnings are looking robust, and while valuations are becoming attractive, there is still scope for further compression.

Even though the recent rally didnt come as a surprise, the ferocity of the rally took most investors by surprise. Broadly, there are two factors driving this rally: one, global and two, domestic. It is important to understand that the ongoing stock market rally is global.

India offers “a much more constructive story for capital markets than the rest of Asia. It is as wide open as we have seen it for a while,” said Udhay Furtado, co-head of ECM, Asia Pacific at Citigroup Inc. “Bigger names could be potential candidates for 2024 listings.”

‘The volatility in the market is expected to continue in the short term as the global banking system is yet to fully recover from the crisis, especially in Europe’

Global cues are muted as most of the Asian markets are closed for this week on account of Lunar New Year holidays, which kept global investors on side-line. Overall we expect the market to consolidate with negative bias in the near term, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal.

“This is very much a US and now European problem. China's export industry will see some spillover but there are other parts of China which were in lockdown last year and significant parts of the domestic economy could revive. The commodity market has some legs and gold to be perfectly honest, is one of the areas that could be very interesting going forward.”

Overall, analysts expect some volatility over state assembly election results, however, the short-term technical outlook for benchmark indices continues to be in favor of the bulls.

Major central banks have jacked up interest rates at a pace many policymakers and economists thought would prove crushing, perhaps taming inflation but at a high cost. Inflation has slowed a bit, but not so fast or so far that any central banker feels the war is won, and recent data have shown the progress to be slowing.

India Business News: NEW DELHI: Capital Group, an American financial services company, has said that India appears to be more attractive than other emerging markets in the.