V.K. Vijayakumar, Geojit Financial Services' Chief Investment Strategist, notes a prominent near-term trend in the market characterized by a narrowing range. Despite this confined movement, the market demonstrates resilience, prompting a successful "buy on dips" strategy within this range-bound scenario. Vijayakumar highlights the market's anticipation for triggers that could potentially prompt a breakout, citing the upcoming state election results as potential catalysts.
He speculates that confirmation of political stability post the 2024 General Elections through the state election outcomes could initiate a pre-election rally. Additionally, he points out positive indicators such as the 10-year US bond yield stabilizing around 4.40 per cent and a decrease in Foreign Institutional Investor (FII) selling volume, both of which bode well for the market's future trajectory.
Despite sustained FII selling impacting leading banking stocks and the recent RBI action elevating the risk weighting on unsecured loans, Vijayakumar identifies these stocks as favorable long-term investment opportunities for patient investors.
On Thursday, the BSE Sensex registers an 18-point increase, reaching 66,052 points. Furthermore, Indusind Bank shows a positive upward movement of more than 1 per cent amidst this market scenario.
(With Agency Inputs)
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