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Global volatility subsides, Stock specific action to prevail amid consolidation

ICICIdirect Research 09 Aug 2024 DISCLAIMER
  • Indian benchmarks retreated for second week led by global volatility amid concerns over liquidity. Nifty and broader market indices corrected 1.5% each
  • Way ahead: Expect consolidation in Nifty in upcoming truncated week in the 23800-24400 band, while sustainability above 24400 would trigger extended upsides towards 24700 levels
  • Markets would look for direction from global markets, India and US inflation print
  • Structure: Nifty has corrected 5% (this has been norm in CY24) and relatively outperformed global markets. Globally, Nikkei and US indices have also bounced from oversold readings and expected to consolidate
  • India VIX: This is key monitorable from risk perspective. VIX has cooled down significantly from resistance zone of 23-30 indicating that participants are not expecting higher risk in short term
  • Sectorally, Oil & Gas, IT, Pharma and Chemicals are expected to perform better
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