Mumbai, April 4:
Indian stock markets are entering a phase of consolidation marked by heightened volatility and limited directional clarity, as global uncertainties and mixed domestic signals continue to weigh on investor sentiment, market experts said on Saturday.
Benchmark indices, including the Nifty 50 and BSE Sensex, ended the holiday-shortened week on a subdued note, extending their losing streak to six consecutive weeks. The Nifty declined 0.47 per cent during the period, while the Sensex also closed in the red.
Despite the weak headline performance, analysts noted a shift in the broader market trend. According to Hariprasad K, the market appears to be transitioning into a consolidation phase characterised by high volatility and low visibility.
He observed that while domestic institutional flows and technical support levels are providing some stability, global factors, particularly crude oil prices and geopolitical developments, are likely to dictate the market’s direction in the near term.
The broader market structure, experts say, remains fragile but not decisively bearish. Immediate support for the Nifty is seen around the 22,500 mark, while the 22,900-23,000 zone is emerging as a strong resistance band due to sustained selling pressure.
Analysts caution that unless the index manages to break and sustain above this resistance range, the prevailing strategy in the near term is likely to remain “sell on rise,” reflecting cautious investor sentiment.
Echoing similar concerns, Ajit Mishra pointed to persistent volatility driven largely by global developments, particularly rising tensions involving the United States and Iran.
These geopolitical risks have contributed to elevated crude oil prices, a key concern for India as a major energy importer. Higher crude prices can have a cascading impact on inflation, currency stability, and overall market sentiment, analysts noted.
Looking ahead, the coming week is expected to remain data-intensive, with both domestic and global cues influencing market movements. Experts say developments in the US-Iran situation, along with trends in crude oil prices, will continue to be critical triggers for investors.
With uncertainty persisting across global markets, Dalal Street is likely to remain range-bound in the near term, as investors adopt a cautious approach amid evolving risks and limited visibility on future trends.
