The Indian equity markets ended the day on Monday in a red trend as Nifty 50 and Sensex registered losses. The Nifty 50 dropped by 0.39% to close at 24,671.25 while Sensex declined by 0.4% to 81,821 at 14:10 IST. This marks the fifth week of a consecutive streak since last July that was characterized by positive gains in weekly trends. For those looking to invest in stocks today, the timing is critical as markets grapple with uncertainty.
Investor focus now lies on the U.S. Federal Reserve, as it is expected to announce a 25-basis-point rate cut during its policy meeting on Wednesday. The analysts predict a 97% chance of this reduction through the CME FedWatch tool. However, for the direction of the market, guidance by the Fed about further monetary easing will be equally important.
Which stocks should you invest in today? Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services tells
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, explained that the volatility on Friday was sharp, led by conflicting market views. However, he cautioned investors to assume that FIIs will settle in a steady trend that turned positive this month for the first time after two heavy outflows months. The continued strength of the US dollar and high bond yields are the main obstacles to capital inflows in Indian markets.
Concerns about growth also affect the sentiment. Slower GDP growth and flat estimates for earnings have challenged sustainability in rallies for markets. However, analysts feel that time will be needed to post a substantial recovery, supporting growth and earnings data will do.
Nagaraj Shetti, senior technical research analyst at HDFC Securities, sees minor consolidation in Nifty 50 after Friday’s sharp rebound. He expects support in the index at the level of 24,600 and a rebound thereafter over the next one to two days. The immediate resistance remains at 24,800.
For investors considering whether to invest in stocks today, technical experts advise a cautious approach while paying attention to the Fed decisions and global economic indicators.
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