Indian stock market
The terrorist attack in Kashmir has increased tension between India and Pakistan. Due to this, the stock market investors are worried and profit booking has also been seen in the previous sessions. According to experts, the market sentiment may remain ‘cautious’ due to increasing stress. Last week, the Nifty-50 at 24,039 points and the BSE Sensex closed at 79,212 points. The support of favorable global signals last week led to a rapid decline in the Indian benchmark indices after positive start. This was caused by profits, which came due to increasing tension between India and Pakistan after terrorist attacks in Pahalgam in Kashmir. After the attack on tourists in Kashmir, there was pressure on hotels and aviation shares due to the possibility of negative impact on tourism.
Foreign investors can adopt ‘look and wait’ policy
Vinod Nair of Geojit Investments Limited said that India historically showed strong flexibility towards geopolitical factors due to its strong domestic economy. Nair further said, “Foreign investors can adopt a strategy of ‘look and wait’ in the near future to assess geopolitical stress. In view of India’s historical performance and the vibrant nature of the domestic economy, the market has shown strong flexibility during geopolitical factors. If there is further decline, it will be a good chance to gather quality shares for long term investors.
Instability may increase in market
According to market experts, increasing stress between India and Pakistan may increase instability in the Indian market in the next few days. According to Anand Rathi’s report, the Indian equity markets have never declined by more than 2% in the time of increased tension between India and Pakistan, except for the 2001 Parliament attack. Even during the 2001-02 Parliament attack, the decline was probably more affected by global factors, as the S&P 500 declined by about 30% at that time.
How will the market be this week
This weekend investors are closely monitoring any new military development between India and Pakistan. How the market will open on Monday will depend on this. Rajesh Bhosle, an equity technical analyst of Angel One, said, “On Friday, there was a strong selling due to the increasing geopolitical tension between India and Pakistan, causing the early weeks’ early sessions.
What do charts say
The Nifty has confirmed a strong boom breakout on the chart by crossing the February-March swing high. On Friday, significant support was received at the breakout zone around 23900 to 23800. This remains a major decisive level. If geopolitical stress increases or it breaks support, a decline may come from 23500 to 23300 zones. At the same time, immediate resistance is seen from 24250 to 24350.
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