Shillong, September 29: V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, suggests that the traditional ‘sell on rally’ market strategy might see a shift in October. Historically, October has been a favorable month for both US and Indian markets, and there are indications that this trend could continue this year.
As per IANS, Vijayakumar points to the easing of the ‘triple whammy’ effect caused by the up-trending dollar, US bond yields, and Brent crude prices. If this trend continues, it could support market recovery. Additionally, stability in the US market is seen as a positive factor.
However, sustained foreign institutional investor (FII) selling could continue to exert pressure on the markets. Despite FII selling of Rs 25,000 crore this month, banking stocks have become more attractively valued. Positive responses to Q2 results in the banking sector could boost market sentiment.
Vijayakumar also highlights the significance of the US PCE inflation data expected, as it can provide insights into the trajectory of US inflation and interest rates.
As of Friday, the BSE Sensex is up 169 points at 65,677 points, with NTPC showing a more than 3 percent increase in trade.
Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher, notes that the Nifty experienced a significant drop after initially opening positively. It breached the crucial 50 EMA level of 19,550, signaling a “Bearish Engulfing Candle” on the daily chart. Parekh suggests that if the index remains below the 19,550 level, the next major support zone would be around 19,250. Support for the day is seen at 19,400 levels, while resistance is at 19,700 levels.