New Delhi, Oct 30 (SocialNews.XYZ) The oversold position in the market facilitated the 190 point bounce back in the Nifty on Friday. But the conditions are not favourable for the continuation of this uptrend since the risk-off mood persists in the market, says V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The risk of the Middle East geopolitical crisis spreading is high and since the ground war has begun in Gaza there can be lots of uncertainty and unexpected developments, he added.
The other major factor impacting the markets -- the elevated US bond yields -- also will remain a short term concern since the Fed is likely to continue its hawkish stance in the light of the resilience of the US economy and inflation (3.7 per cent) remaining above the Fed’s target. So watch out for the Fed’s message on November 1 even while it holds the rate as the market expects, he said.
Investors may remain cautious in this time of high uncertainty and risk. Nibbling at high quality large-caps will be a smart move, he said.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said Nifty, after the three consecutive sessions of weak candles, indicated a decent pullback to close above the 19000 zone with the broader markets also showing signs of improvement with active participation witnessed from the midcap counters.
The index would need a decisive move past the 19200 zone to establish some conviction and overall improve the bias to anticipate for further rise. The support for the day is seen at 18900 levels while the resistance is seen at 19200 levels, Parekh said.
BSE Sensex is up 118 points at 63901 points. Reliance Industries is up 2.4 per cent.
Source: IANS
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