After a six-day rally, the market seems to be losing its fizz as indices neared the key resistance levels, FPI flows into Indian equities have turned positive with the change in the macro narrative. After having been net sellers of INR ~520Bn in Jan-Feb 2023 period, FPI flows turned into a net positive, even in the yesterday session FPI net bought in cash 1603Cr.
Although, the Asian markets trading negative lead on Wall Street as the latest Federal Reserve policy meeting minutes showed that most officials would support more rate increases ahead, bolstering bets for a 25 basis point rate hike this month.
Technically, weekly RSI showing a lot of strength thus any dip near 19,200–19,250, followed by strong support at the psychological level of 19,000 will likely to be a buying opportunity. while, immediate resistance is at 19,500–19,540
The recent macro data supports the narrative of continuing strength in Indian equities. The latest reading also marked the 23rd straight of growth in the sector supported by a stronger increase in new business and further job creation. The new export business grew for the fifth successive month. Employment continued to increase, with the rate of job creation being slight and the joint-fastest in six months, Looking ahead, business sentiment improved amid predictions of further demand strength and favorable market conditions.
Overall, market in mid to long term seems bullish till 20000 levels by the end of this year and 21400 seems likely by FY 24. Mid term retracement levels seems 18800.
Although, the Asian markets trading negative lead on Wall Street as the latest Federal Reserve policy meeting minutes showed that most officials would support more rate increases ahead, bolstering bets for a 25 basis point rate hike this month.
Technically, weekly RSI showing a lot of strength thus any dip near 19,200–19,250, followed by strong support at the psychological level of 19,000 will likely to be a buying opportunity. while, immediate resistance is at 19,500–19,540
The recent macro data supports the narrative of continuing strength in Indian equities. The latest reading also marked the 23rd straight of growth in the sector supported by a stronger increase in new business and further job creation. The new export business grew for the fifth successive month. Employment continued to increase, with the rate of job creation being slight and the joint-fastest in six months, Looking ahead, business sentiment improved amid predictions of further demand strength and favorable market conditions.
Overall, market in mid to long term seems bullish till 20000 levels by the end of this year and 21400 seems likely by FY 24. Mid term retracement levels seems 18800.