Indian markets reached a fresh intraday peak before seeing profit-booking due to anticipation of key US inflation data. Recent better-than-anticipated US employment and manufacturing data, as well as escalating geopolitical tensions in the Middle East, have impacted market sentiment. Q4 earnings will now be in focus.
According to Vinod Nair, Head of Research at Geojit Financial Services, concerns have emerged as market participants await the US inflation data, which plays a crucial role in determining future rate cuts by the US Fed. The recent uptick in crude prices due to geopolitical tensions and supply concerns has also added to the uncertainty in the markets.
Rakesh Parekh, MD & Co-Head of Portfolio Management Services at JM Financial, expressed optimism regarding Indian markets crossing all-time highs, citing good earnings growth and strong economic fundamentals. With total flows touching $50 billion for FY24, including $2 billion a month from domestic SIPs, Parekh expects the momentum to continue for the remainder of 2024.
Senior Technical Analyst at LKP Securities, Rupak De, noted that while the Nifty opened higher, it faced selling pressure at elevated levels. The RSI on the hourly chart signals a bearish divergence, hinting at a potential shift in price momentum towards the downside. The focus now shifts to the performance of Q4 earnings in the coming days.
