Gift Nifty at 25,030 indicates another soft opening for Nifty, Sensex. According to analysts, market will be volatile ahead of the F&O monthly expiry at the NSE this Thursday. However, analysts expect the market to remain in consolidate mode.

Vikram Kasat, Head - Advisory, PL Capital, said: “Valuations in the large cap space are comfortable as Nifty is currently trading at 18.9x 1-year forward EPS, which is nearly at par with the 15-year average of 19x. Expectations of strong festival season demand, rural revival and interest rate cuts would support the markets, along with periods of consolidation. Focus has to shift to quality stocks now.”

Global markets are in profit-taking mode, with US stocks closed on a mixed note.

According to Kelvin Wong, Senior Market Analyst, OANDA, the annual Jackson Hole symposium has been done and dusted. US Federal Reserve Chairman Jerome Powell has given the clearest hint that the Fed may kickstart its interest rate cut cycle at theSeptember 18th FOMC meeting, after holding the Fed funds rate at a two-decade high of 5.25-5.50 per cent.

“Right now, market participants are likely to focus on the state of the US economy in line with the Fed’s interest rate cut cycle on whether the Fed is late in the game of enacting its interest rate cuts and the potential impact on risk assets such as equities and broad-based benchmark stock indices, he added.

Meanwhile, most equities across the Asia-Pacific region are down marginally.

Technically, too, Indian stocks are strong, said analysts.

Rajesh Bhosale, Equity Technical Analyst, Angel One, said at the start of the August series, prices faced volatility with significant corrections and bearish gaps. However, as the series concludes, prices have staged a strong recovery, approaching their all-time highs. Monday’s bullish move, marked by a gap-up, suggests that prices might soon enter uncharted territory. Traders should maintain a positive outlook and consider any dips as buying opportunities, he said, adding that “unlike the end-of-July rally, current indicators are not in the overbought zone, signalling the potential for further upside, but also showing negative divergence. Hence, traders should avoid being complacent and use a selective approach.”

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