Indian Stock Market Sees Caution Amid Elevated Crude Oil Prices and Geopolitical Tensions
The Indian stock market closed the week on a cautious note, extending its corrective trend due to elevated crude oil prices and geopolitical tensions. Despite staging a recovery on Friday, the rebound remained subdued amid persistent foreign investor selling and concerns over rising energy costs.
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, explained that markets are likely to focus closely on upcoming US PPI and CPI inflation data, which could have a significant impact on expectations regarding the Fed's September policy decision. Higher-than-expected inflation could strengthen the case for tighter monetary policy, potentially putting pressure on global equities and emerging-market fund flows.
Dongre also noted that positioning suggests a relatively defined trading range for the Nifty 50, with significant Put OI concentrated around 23,800, followed by 23,500. However, he added that a decisive break on either side of this range could trigger a sharper directional move.