Sensex, Nifty amid Indo-Pak tension: Key levels and sectors to watch
Dalal Street has lost its pace in the last few trading sessions due to rising tensions between India and Pakistan. Both Sensex and Nifty fell sharply last week as investors turned cautious. The Nifty dropped nearly 1.5% in just three trading sessions by Friday.Foreign portfolio investors (FPIs), who had been buying stocks steadily for over two weeks, turned sellers on Friday. As per provisional exchange data, they sold shares worth Rs 3,798.71 crore. This was the first time in seventeen sessions that foreign investors sold more than they bought.advertisementNow, many investors are wondering if this downtrend will continue or if the market will bounce back. Experts believe that the short-term outlook may remain uncertain, but the overall market remains strong for long-term investors.KEY LEVELS TO WATCH
Aditya Gaggar, Director of Progressive Shares, said, 'The market closed the week on a subdued note at 24,008, but early cues from GIFT Nifty point to a robust start with a potential 500-point surge. The 24,000 mark is expected to act as a firm psychological support, with 24,250 offering immediate support, while 24,500 remains a key resistance level.'He also shared important levels for Bank Nifty. 'In case of BankNifty, the zone of 54,260–54,600 presents a strong hurdle, though the downside appears to be protected at 53,950,' he said.SECTORS TO KEEP AN EYE ONadvertisementGaggar said that certain sectors still show promise even in the middle of ongoing tensions.Auto Sector: This sector looks strong. 'The Auto segment looks promising with a 'buy on dips' strategy, having broken out of a Falling Wedge pattern,' he said.IT Sector: According to Gaggar, the IT sector is currently trading within a range. 'The IT sector remains range-bound, awaiting a clear breakout,' he added.Digital Entertainment: 'Nazara Technologies stands out in the digital entertainment space, with a confirmed breakout from a Symmetrical Triangle, backed by a bullish RSI trendline and MACD crossover,' he said.Pharma Sector: The pharma sector may be coming to the end of a correction. 'The Pharma sector seems to be ending its corrective phase by forming the right shoulder of an Inverted Head and Shoulder pattern,' said Gaggar. However, he also mentioned that 'concerns over drug price reduction could negatively affect the space, and a more informed stance will be taken once the impact is clear.'PSU Banks: Public sector banks have been weak recently, but some signs of recovery are showing. 'Despite the current weakness in the PSU Banking segment, early reversal signals in stocks like Bank of India, Canara Bank, and Union Bank suggest potential opportunities worth tracking,' he added.MARKET OUTLOOK AND HISTORICAL PATTERNSadvertisementVaibhav Porwal, Co-Founder of Dezerv, advised investors to stay calm and avoid panic during such times. He said, 'In moments like these, staying calm is often the most powerful response. While markets may react negatively in the short-term, such drops are short-lived. The Indian markets have been resilient over the years, despite similar situations.'He also pointed out how markets behaved after past tensions between India and Pakistan:After the 2016 Uri strike, markets rose 11.3% over the following year.Following the 2019 Balakot airstrike, there was an 8.9% gain.Even after the Kargil War, the markets went up 29.4% in the next year.Porwal added, 'That's the pattern we've seen again and again in India: deep falls, sharp rebounds — and long-term progress for those who stay invested with a well-diversified portfolio.'He also said that global diplomatic efforts are expected to help bring stability in the near future.'Investors should zoom out and look at the markets from a broader perspective. Indian equity markets stand on strong fundamentals and we don't have much to worry about. Well-diversified portfolios will weather this storm,' Porwal said.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)Must Watch
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