We are in for a sedate opening and another day of rangebound consolidation, as investors remain wary after last week’s drubbing. The undertone continues to be cautious amid macroeconomic headwinds like high inflation and rising borrowing costs. Crude oil has recovered after last week’s crash and is back above US$100 per barrel.
Corporate earnings have been mixed at best. FII flows have not been supportive of late. Policy-making at the Centre has been in a limbo for a while now and may not pick up pace anytime soon.
In a nutshell, the market will largely remain stable without any clear bias. Investors ought to focus on stock centric action, as the main indices are not going anywhere in a hurry. The near term outlook is uncertain with a rangebound trade likely between 5450 and 5630. The 100-DMA is at 5680 and 200-DMA is placed around 5750.
Oil & Gas PSUs will be in focus amid reports that the EGoM will on Wednesday consider fuel price hike and possible steps to reform pricing of petroleum products.
