Indian market witnessed selling pressure during week due to geopolitical tensions arose after Iran’s attack on Israel, experts pointed out.
MUMBAI, Apr 19 (The CONNECT) – After a steep decline at the start of trading, Indian stock indices exhibited a significant rebound on Friday, as geopolitical tensions between Israel and Iran eased, according to Asit C Mehta Investment Intermediates.
Indian market witnessed selling pressure during week due to geopolitical tensions arose after Iran’s attack on Israel, according to Mahavir Lunawat, Managing Director, Pantomath Capital Advisors Pvt. Ltd.
It has affected all markets across the globe during this week. In short term, Indian Market will remain volatile ahead of Geopolitical tensions & beginning of Q4 FY2024 earning season, Lunawat said.
Neeraj Sharma, AVP Technical and Derivatives Research, at Asit C Mehta Investment Intermediates Ltd, said on Friday, the Nifty index surpassed the 22,000 mark, surging by more than 350 points from its intraday low of 21,778 to close at 22,147. From a technical standpoint, index has reclaimed the trend line support of 22,000. Thus, if the index sustains above 22,000 levels, a relief rally towards 22,300-22,500 could be possible, Sharma said.
Nifty Bank index fell sharply in the opening session on Friday, but it made a smart recovery to close the day higher note, at 47574. Technically, trend line support for Banknifty is placed near 46,600, he said. If the index holds the support of 46,600 levels, then a pullback rally towards 48,000 can’t be ruled out. Short-term support levels for the Bank Nifty are identified at 47,000 and 46,600, while resistance levels are at 48,000 and 49,060, Sharma explained.
Lunawat, said the CPI (Retail inflation) in India fell to 4.85% in March 2024, the lowest since May 2023, from 5.09% in February 2024, primarily due to reduction in food & Energy inflation. The WPI rose to 0.53%, a three-month high, primarily due to increase in the prices of vegetables, potatoes, onions, and crude oil. This contrast shows that while wholesale prices (the cost for wholesaler) are increasing, consumer-facing prices are cooling, partly reflecting a lag between wholesale changes and their impact on retail prices.
India’s trade trade deficit narrowed to $15.6 billion for the month of March 2024, down from $18.1 billion a month earlier, primarily due to a significant drop in imports, which decreased by 4.5% to $57.28 billion, Lunawat said.
India’s Index of Industrial Production (IIP) in February 2024 rose by 5.7% vs 3.8% in January due to notable growth in mining, power generation, and consumer durables, alongside a steady output in manufacturing. India is revising its trade agreement with ASEAN to correct tax imbalances that disadvantage local manufacturers and to block duty loopholes, aiming to boost domestic industry growth by next year, he said.
