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Today markets
continue to be in a grind, influenced by and reacting to increasing news flow
on the global front, particularly related to the geopolitical situation and Fed
rhetoric. The two main challenges and monitors for markets in the near term are
persistent inflationary pressures and rising bond yields. While inflationary
pressures have been building in recent months, the geopolitical situation has
worsened the situation as Ukraine and Russia are big players in energy and
several commodities, and the prices of some of these commodities have risen
sharply since the beginning of the crisis. An ongoing geopolitical situation and
elevated prices will gradually weigh on demand and profitability and may result
in growth and earnings estimates being trimmed. The recent rise in bond yields
may also have an impact on capital flows and stock valuations. As markets have
pulled back sharply over the last few weeks one can try to get some liquidity
as the uncertainty and volatility is likely to continue for some time with too
many moving parts creating intermittent opportunities.
After the recent 10% rally, the market has moved sideways with a negative bias
due to the rise in commodity prices, monetary tightening and inflationary
pressures. The domestic market is showing strong resilience, but to maintain
the trend, much will depend on the outcome of the war and commodity prices.
Easing of COVID restrictions in India is a boost for sectors like Hospitality,
Multiplex, Transport etc. resulting in outperformance
SUPPORT : 17109,17003,16803
RESISTANCE : 17309,17403,17603