Shillong, October 12: The ongoing Israel-Hamas conflict has led to significant concerns in the market, resulting in the creation of substantial short positions.
Now, these short positions are being covered, which is driving the markets upward, according to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
As per IANS, the results of TCS have been a mixed bag, with the top-line performance disappointing, but the bottom line and margins showing strength. The market is eagerly awaiting the results of Infosys and HCL Tech, scheduled for Thursday, to form a view on the IT segment. Vijayakumar believes that the rally in banking stocks still has room for growth.
Several positive developments have the potential to bolster the market’s rally. These include a steady decline in the dollar index, decreasing US bond yields, lower crude oil prices, and a significant drop in FII selling in the cash market. Additionally, if the US CPI inflation data expected later tonight falls below 3.6 percent, it could provide a boost to market sentiment.
Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher, noted that despite tensions in the Middle East, the Nifty continued its positive momentum, closing above the 19,800 level. With the results season underway, she anticipates market volatility.
In the near term, the Nifty has support around the 19,600 zone, while the upside target is expected to be around the 20,000 level. The support for the day is seen at 19,700 levels, with resistance at 19,950 levels.
As of Thursday, the BSE Sensex is up 4 points, reaching 66,477 points, with Maruti registering a 1.7 percent increase.
