Indian stock markets are entering a consolidation phase with high volatility and unclear trends, say market experts. The Nifty and Sensex closed lower after a subdued week, continuing a six-week decline. Despite weak headline numbers, experts note a shift in the market dynamics towards consolidation with high volatility and low visibility.
Hariprasad K of Livelong Wealth mentioned that the market seems to be moving into a consolidation phase, supported by domestic flows and technical factors. However, global elements like crude oil prices and geopolitical events will play a crucial role in determining market direction. The broader market structure is seen as fragile but not definitively bearish.
Experts highlight that the market faces immediate support at the 22,500 level, with strong resistance in the 22,900–23,000 zone due to significant selling pressure. The prevailing trend is likely to be ‘sell on rise’ unless the index can sustain above this zone. Ajit Mishra of Religare Broking emphasized that persistent volatility is largely driven by global factors, especially tensions involving the United States and Iran.
The upcoming week is expected to be data-intensive, influenced by both domestic and global cues. Developments in the US-Iran conflict and their impact on crude oil prices will be crucial market drivers, affecting inflation, currency stability, and overall market sentiment.
