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Volatility will be the hallmark of today’s trade at the bourses. WIth Tuesday being closed holiday for domestic markets, analysts expect narrow range for Indian stocks due to expected lack of participation. Investors are anxiously watching the developments at Russia-Ukraine crisis. While Western nations imposed multiple sanctions against Russia, global investors still remain clueless on the outcome of the crisis.
SGX Nifty, which was hovering around 16,920 in early deal, surrendered most of its gains to currently rule at 16,680 (7:45 am). This indicates a flat opening for Indian markets, as Nifty futures on Friday closed at 16,656. Asian markets give mixed signal with equities across Australia, Korea, New Zealand and Malaysia up marginally while Japan and Chinese markerts are down marginally.
US futures are down by about two per cent in early deal on Monday.
Golden opportunity to buy?
Analysts expect the market to witness a pain in the short term but this dip could provide an opportunity to accumulate stocks for the long-term.
"The geopolitical developments may be expected to continue to direct investor sentiment and keep the markets volatile; long term investors should utilise this opportunity to add onto the positions in well established businesses,” said Dr. Joseph Thomas, Head of Research, Emkay Wealth Management.
‘Diversify portfolio’
Analysts advise investors to diversify their portfolios, given the current volatility.
“Investors will continue to remain cautious by keenly watching the developments in the Russia-Ukraine war,” said Vinod Nair, Head of Research at Geojit Financial Services. In such a volatile market a prudent approach is to have a balanced portfolio with a mix of equity, debt, gold, and cash, he added.
According to Anu Jain, Head – Broking, IIFL Wealth, in the short-term, Index prices are expected to remain volatile with Thursday’s low (16203) as an important level to watch. "Sustainability below 16400 would indicate weakness for 15900 levels and broad range for the Market could be 15800-17050 levels. Global Markets have retraced back to important support levels and a temporary pullback and consolidation remains a probable scenario," she added.
As long as, domestic institutions' support overwhelmingly, the downside is limited, said analysts.
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