Geojit Financial Services Ltd

💼 The excessive volatility witnessed on Friday reflects the sharp differences in perceptions about the near-term market trend. 💼 The huge positions in F&O segments are causing such heightened volatility in the market. 💼 The 500-point move in the Nifty from the day’s trough to the peak indicates massive short covering. 💼 While FIIs turning buyers in December, so far, after the relentless selling in the previous two months is a positive, investors should not assume that the FIIs will continue to buy. 💼 Strong dollar and high bond yields in the US are headwinds for capital flows. 💼 Slowdown in GDP growth and stagnant earnings growth are hurdles in the path of the bull. 💼 A rally will sustain only if the data regarding growth and earnings show recovery, which will take some time. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼 In the near term, the market has both a headwind and a tailwind. 💼 The headwind is the resumption of selling by the FIIs, who sold stocks for Rs 3560 crores yesterday. 💼 Given the high valuations in India, FIIs are likely to sell more at every market rise, as selling has been profitable for FIIs due to the appreciating dollar after the US election. 💼 The tailwind that can support the market is the declining inflation, with November CPI inflation at 5.48% coming within the RBI’s tolerance limit. 💼 If this trend continues, it can pave the way for a rate cut by the MPC in February. 💼 However, the rising dollar is a concern since it can lead to imported inflation. 💼 Nifty is unlikely to break from the range of 24500–24850, with buying emerging at the lower end of the band and selling resuming at the higher end. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼 The range-bound consolidation construct of the market is set to continue. 💼 The bull run in the US is continuing unabated, with Nasdaq setting a new record and closing above 20000 yesterday. 💼 The Magnificent Seven stocks continue their resilience and uptrend despite elevated valuations. 💼 The strength of the mother market, which indicates that the global market rally is intact, is a support for other markets, too. 💼 Even though the US CPI inflation in November at 2.7% has come a bit above the October numbers, this was on expected lines, and, therefore, the expectation of a 25bp rate cut by the Fed is intact. 💼 In India, the November CPI numbers to be released today will be keenly watched. 💼 Market action today will be largely stock-specific with limited moves at the index level. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼 Nifty is in a consolidation range and is likely to remain in this consolidation phase with a mild upward bias in the near term. 💼 The biggest positive for the market is the return of the FIIs and the consequent strength in the largecaps, particularly in banking and IT. 💼 FIIs turning buyers have enthused the retail investors who have been on the defensive after the near 10% correction from the September peak. Now retail investors are back in action and are chasing many mid and smallcaps. 💼 Mid and Smallcap indices have again turned resilient, supported by sustained fund flows in these segments. 💼 Valuations in these segments are hard to justify, but the resilience of these segments might continue, given the strong fund flows into these segments. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼 Market is likely to move in a narrow consolidation pattern in the near-term. 💼 There are no major triggers that can push the market into a new bull orbit. Also, there are no major triggers that can cause a deep correction from the current levels. 💼 Within the range, there are significant down moves and up moves. 💼 FMCG stocks are facing selling pressure due to the tepid growth phase they are going through. Conversely, financials are resilient and moving up on good prospects and attractive valuations. 💼 Since markets have a tendency to overreact, the present weakness in FMCG stocks will give opportunities for investors to accumulate them for the long-term. 💼 If there is further correction in this segment, some of the bluechips will become attractive buys. 💼 The resilience of banking and IT stocks is likely to continue for some more time since there are tailwinds that can support their up move. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼 The near-term trend of the market is mildly bullish. 💼 The leadership for the rally, which has taken the Nifty up by 3.2% during the last fortnight, has come from the leading banks, which are even now fairly valued and have the potential to take the market forward. 💼 The return of the FIIs is another positive, which augurs well for the largecaps. 💼 The ongoing rally can take the Nifty Bank to new record highs, lifting the Nifty further up. 💼 However, the sustainability of the rally is doubtful since the slowing Indian economy will constrain the bulls, and the FIIs may again turn sellers since there is no valuation comfort in the market. 💼 The momentum in the US market is robust, and in such a scenario, the bulls cannot be overly optimistic. 💼 Rate cut by the Fed this month is now a foregone conclusion, and this will keep the equity markets positive. 💼 The medium to long-term trend of the market is uncertain. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼 FIIs turning buyers in December, in total reversal of their sustained selling strategy during the last two months, has altered the market sentiments in favour of the bulls. 💼 Encouraged by the FII buying, retail investors, too, have jumped on to the buying bandwagon. This has triggered short-covering leading to sharp intra-day volatility. 💼 The 500-point swing in Nifty from the peak to the trough yesterday indicates a tug-of-war between the bulls and the bears. 💼 The best strategy in this volatile context would be to remain invested with higher weightage for largecaps, where there is valuation comfort. 💼 The policy response of the RBI and the central bank’s commentary on the growth and inflation outlook will be keenly watched by the market today. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼 Dow moving past 45000 for the first time is an indicator of the strength of the US market rally. 💼 The macro construct in the US - strong growth and declining inflation - supports this rally. 💼 The Fed chief Powell’s remark yesterday that the “economy is in remarkably good shape” is a shot in the arm for the US bulls. 💼 However, there is a concern that the valuations in the US are getting stretched. This concern about high valuations is true in India, too. 💼 In a bull market, valuations can get stretched and, therefore, some caution is always good. 💼 FIIs turning buyers is positive for markets, particularly for largecaps. 💼 The strength in banking stocks has the potential to take the Bank Nifty towards all-time highs. This can help Nifty, too, to move higher. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼 The signals from the market are a bit confusing as it has ignored the sharp slowdown in Q2 GDP growth and remains resilient despite massive FII selling. 💼 There are many likely headwinds from the Trump presidency, and valuations are elevated with Nifty trading around 20 times estimated FY26 earnings. 💼 In this context, investors should adopt a cautious investment strategy with asset allocation as the underlying principle. 💼 Since the market has been resilient amidst challenges, it makes sense to remain invested. 💼 Those with lower risk appetite can consider moving some money from overvalued mid and small caps to large caps and debt. 💼 News of Rs 71,722 crores of defence order proposals will keep defence-related stocks on the radar today. 💼 FIIs turning buyers is a positive factor that can help large caps remain resilient. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets