Market consolidating near all time high amidst geo political events
The markets in the month of September reached a new life time high of 20222 in nifty before cooling off. It was broad based rally across sectors and market cap. Small cap and midcap has completely outperformed large cap in this year. DII has been continuously buying in the markets, thanks to the continuous Mutual fund inflows from retail participants which has also touched record high in July and then in Aug’23. FII though has been doing buying and selling both throughout the year and lately has been net sellers but its impact on market is negligible. Global markets are also in broad uptrend with bouts of volatility. The geopolitical events have been unfolding fast this year with new Crisis between Israel & Palestine. The ongoing Russia & Ukraine crisis from last year is still persisting. This can impact the market in coming months as it unfolds.
Outlook for the Indian Market
Markets are complex and volatile by nature. In the current scenarios, it’s even more as Investment & traders behaviour are impacted by news and events. However, news tends to have a short-term impact on market movements. Markets can be highly reactive to breaking news, resulting in fast and sometimes unpredictable price swings. However, these fluctuations are often temporary and may not reflect the long-term value or prospects of an asset. Many past events have vindicated this point.
Fundamental outlook: The market has been in broad uptrend and has been one of the best performing market globally. It is near all time high. The market is slightly over priced on the basis of fundamental, however Indian economy has been performing well and RBI stance on monetary policy has been accommodative. There have been many IPO listing this year and many more are lined up few months left in this year. Hence, fundamentals are strong and market stable currently. However Investors & Traders should track all developments in Indian and global markets regularly.
Technical outlook: Indian market is sideways to positive on basis of technicals. Nifty is trading above all imp moving average of 20, 50 & 200. The RSI range is 50 to 60 which indicates uptrend. The market reacted recently more on basis of global events and again recovered and consolidating. The broad range for nifty in this month is 19200 to 20400. Nifty is finding support at 19500 and resistance at 20000.
