Bounce Back in Indian Stock Markets
The markets will be opening today after a long Holi weekend and the cues look optimistic for a higher start on Nifty. There should be a bounce back in Indian stock markets.
US 10-year Bond yields have surged to 1.73% and dollar index at 92.9 looks very close to 93. As per the technical analysis, it can go into a new bull zone above 93.
Higher US bond yields will mean strong dollar as funds flow into US and thus is quite negative for emerging markets, including India.
However, in the current scenario, higher bond yields mean high growth across major markets and thus Nifty is higher even after a higher dollar index.
After a last week low of around 14250-14300 for Nifty, which is 66% retracement of the entire rally after budget 2021, levels to watch out for are 14800-14950.
As per me, looking at the run up and current macro environment, we are in a consolidation zone with downward bias. This is because we have started making lower lows and lower highs in Nifty in last few weeks.
Hence, lets watch the levels of Nifty today as to where it closes.
Investors and traders can look at their overall positions which they are holding and long-term positions can be lightened up till the time more clarity emerges.
For equity markets cash calls, investors can look at Pharma, cement and IT.
Few stocks which deserve a look at current levels are Sun Pharma, TCS, Ambuja Cements, etc.