The Indian equity markets are currently experiencing a consolidation phase, with the Nifty struggling to decisively cross the 26,000 mark. This is due to weak global cues and sustained foreign investor selling. The market is witnessing a time-wise correction, with sharper pain in the midcap and smallcap segments, where several stocks have corrected 25–30%.
The Nifty is broadly oscillating in a 200–300 point range, indicating a classic consolidation phase. The index briefly slipped below 26,000 mid-week but found strong support around 25,850, triggering a rebound. However, global cues remained unsupportive for most of the week.
Foreign Portfolio Investors (FPIs) continue to remain net sellers, particularly towards the year-end. This is a typical trend, as FPIs tend to close positions at the end of the calendar year. Despite this, the Indian markets have shown resilience, avoiding any major correction.
The softer-than-expected US CPI print of 2.7% provided some optimism, but clarity on the Federal Reserve’s rate trajectory will emerge only over the next few policy meetings. The data provided temporary relief, but markets need confirmation through upcoming economic numbers.
The sharp depreciation of the rupee, which recently touched 91 against the dollar, remains a key worry for FPIs. Currency weakness and uncertainty around global trade deals continue to keep foreign investors cautious.
Some potential opportunities in the market include:
For the near term, the markets are expected to remain range-bound. The resistance is at 26,000–26,250 on Nifty, while the support is around 25,850. A decisive breakout above 26,250 is needed for fresh upside.
Remember, this is a perspective, not a prediction. It's essential to do your own research and consider multiple viewpoints before making any investment decisions.
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