Investors likely to remain cautious due to Middle East tensions
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New Delhi (Uttam Hindu News): Investors are likely to remain cautious in the near term due to concerns about the lingering impact of geopolitical tensions in the Middle East. This has been said by Vinod Nair, Head of Research, Geojit Financial Services. He said, we believe volatility will persist, however, long-term investors will find investment opportunities due to Q2FY24 results, earnings estimates and increased demand environment due to festivals.
Indian market will carefully monitor US GDP data for Fed’s interest rate hike. Additionally, as the earnings season picks up pace, investor sentiments will be shaped by corporate management commentary and bottom-up investment outlook, he said.
Middle East tensions and increased US bond yields kept the market soft this week. A weak start to the earnings season, disappointment from the IT sector and mixed results from banks prompted investors to book profits. He said FIIs continued to withdraw funds as the US Fed Chair stressed the imperative to continue accommodative monetary policy and keep interest rates high.
Siddharth Khemka, head of retail research, Motilal Oswal Financial Services, said the banking sector will be in focus on Monday. Investors will react to the second quarter results of ICICI and Kotak Bank. Key results to be announced next week will include Axis Bank, TechM, Maruti, Bajaj Finserv, SBI Life and Dr Reddy’s.
Nagaraj Shetty, technical research analyst at HDFC Securities, said that the short-term trend of Nifty remains negative. A fall below the support of 19,480 may pull Nifty towards another important support of 19,350 levels in the near term. Immediate resistance is placed around 19,650 levels.
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