Expect high volatility next week! Russia-Ukraine war, crude to be in focus

Expect high volatility next week! Russia-Ukraine war, crude to be in focus
By , ETMarkets.com
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The next week is not likely to be easy as well. Analysts expect the weakness to continue.

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NEW DELHI: After rising for a couple of weeks, the market has again started consolidating in a narrow range. Volatile moves have become more common and a sense of uncertainty has creeped on Dalal Street.

Elevated crude prices, tightening monetary policy by Fed, higher inflation levels along with rising Covid cases in parts of the world led to the market teetering. FIIs turning into buying mode was a positive for the market, however, due to the ongoing global uncertainties, domestic retail investors lacked the confidence to take fresh positions.

The next week is not likely to be easy as well. Analysts expect the weakness to continue.

“The domestic market will continue to follow global developments. An end to the war & rise in oil supply can help India to sustain its resilience or else high volatility will be a concern in the short-term," said Vinod Nair, Head of Research at Geojit Financial Services.

Mixed global cues combined with erratic swings in crude are causing discomfort to participants and it might linger in the coming week as well, according to Ajit Mishra, VP - Research, Religare Broking.

On the index front, Nifty has been hovering within a narrow range of 17,000-17,350 and either side break would trigger the next move. Meanwhile, participants have no option but to focus on sectors/stocks which are performing well while concentrating more on overnight risk management, he added.

Going forward, market participants would likely keep an eye on the development surrounding the Russia-Ukraine war.

Any truce between Russia and Ukraine could possibly lead to a cooling off of global crude and commodity prices. Global central bank policy moves and the policy response of the central bank in India would be the other key events to watch out for, said Shibani Kurian, Senior EVP & Head- Equity Research, Kotak Mahindra Asset Management Company.



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