Imminent volatility in market spooks investors

Experts anticipate increased volatility in Indian market; advise investors to opt for sectors that show higher strength

- ARSHAD KHAN

THE rally in India's equity market took a big pause on Friday as big names such as Reliance Industries Ltd, Hindustan Unilever and Infosys reported weak numbers for the quarter ended June 2023 (Q1FY24). Going ahead, experts anticipate increased volatility in the Indian market and have advised investors to manage their positions.

"We expect higher volatility in the coming week due to the scheduled monthly expiry of July month derivatives contracts... Nifty has almost tested the new milestone i.e. 20,000 and gained over 7% in the last four weeks, which has pushed the oscillators into the overbought zone. It would be healthy if we see some consolidation now, before making further progress," said Ajit Mishra, SVP-Technical Research, Religare Broking.

Mishra expects Nifty to respect the 19,300-19500 zone in case of any dip while any attempt to surpass the 20,000-20,200 zone may attract profit booking.