Indian markets showing resilience against weak global trends

Indian markets showed resilience against global trends on Wednesday, bolstered by positive manufacturing PMI data and optimism around Q4 results, according to Vinod Nair, Head of Research, Geojit Financial Services. The buoyancy in the market indicates strength in the short term, despite initial weak start attributed to negative global cues.

Nair highlighted the impact of strong US economic data on market expectations of a Fed rate cut in June, as well as the anticipation of Fed Chair Jerome Powell’s speech for more insights. Additionally, Rupak De, Senior Technical Analyst at LKP Securities, noted the Nifty’s volatility throughout the day, with bullish momentum indicated in the short term.

De mentioned that the Nifty may trend towards 22,650 in the short term, with support at 22,350. Despite fluctuations, the overall sentiment remains robust as the index sustains itself above key moving averages. At Wednesday’s close, the Sensex was down 27.09 points at 73,876.82, while the Nifty was down 18.60 points at 22,434.65.

The Indian market’s performance reflects a mix of domestic factors like positive PMI data and global cues such as US economic indicators. Investors are closely watching for cues from US Fed Chair Jerome Powell’s speech for further market direction. Despite challenges, the market remains resilient, supported by strong fundamentals and technical indicators signaling bullish momentum in the short term.

As uncertainties loom globally, Indian market participants remain cautiously optimistic, with focus on key support levels and upcoming events like Q4 results. The current market scenario underscores the importance of monitoring both domestic and global economic trends to navigate volatile conditions and capitalize on emerging opportunities in the financial landscape.