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In the second week of February, the markets tumbled, failing to sustain Budget week gains on a slew of hanging worries such as imminent Fed rate hike, geo-political risk and rising crude prices. The markets on Friday shed as much as 1.31% on Friday, while on the weekly basis tumbled by as much 1 percent.
The earnings season, the looming inflation and interest rate hike worries will also continue to cast its impact on emerging market equities including India. Nifty 50 sank to 17374 levels below its 50 DMA placed at 17,464. So, now as FII selling and the ongoing elections continue to impact market sentiments, technicals hint at consolidation going forward as viewed by 5Paisa.com Lead Research Ruchit Jain, "Such structure of 'Lower Highs and Higher Lows' in the index are usually formed in a consolidation phase which indicates that Nifty is consolidating within a 'Symmetrical Pattern".
So, investors given the likely global equity sell off amid the increase in US bond yield should wait for a decisive breakout or a breakdown before taking any position on either side.
GoodReturns.in
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