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

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

These are vital macro dangers which the market can not ignore for lengthy. FIIs refraining from huge promoting is due to the FOMO (worry of lacking out) issue, he mentioned.

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

Investors ought to train warning, significantly in the over-heated mid-and small-cap segments. Safety is in large-caps, he added.

The participation of large-cap bluechips throughout sectors has been giving power to the rally which has taken the Nifty effectively above 21,000 degree, he mentioned.

The undeniable fact that the pretty valued banking section has been a major contributor to the current rally is also a optimistic improvement. PSU banks like BoB, Canara Bank and Indian Bank are even now attractively valued, he added.

Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher mentioned Nifty index proceed to report new highs touching the 20,200 ranges throughout the intraday session and is poised for additional good points in the coming classes with close to term-target anticipated until 20,300-20,350 zone.

The broader markets as soon as once more are regaining power with vital participation seen from the mid-cap and small-cap counters supporting the index for additional good points. The help for the day is seen at 20,100 ranges whereas the resistance is seen at 20,350 ranges, Parekh mentioned.