Volatility is expected to remain high and Gap up 70 to 85 up...

Technically, R 21449 & R 21286, and Support are mentioned in the chart.


The bearish sentiment is likely to continue in the short term, with a potential downside towards 21,000 for the Nifty.

Sectoral rotation may occur, with defensives like pharma holding up while cyclicals like metals and banks come under pressure.

Volatility is expected to remain high due to uncertainties surrounding interest rates and geopolitical issues.

1. Rising US interest rates: The Federal Reserve's anticipated rate hikes to combat inflation have already caused jitters in global markets, including India. Foreign investors may pull out funds from emerging markets like India, putting downward pressure on stock prices.

2. Russia-Ukraine War: The ongoing conflict continues to disrupt global supply chains and drive up energy prices, impacting commodities and infrastructure sectors. Escalation of the war or further sanctions on Russia could amplify these effects.

3. US-China tensions: Trade frictions and geopolitical disagreements between the US and China remain a source of uncertainty for global markets. Any significant flare-up in tensions could have ripple effects on the Indian economy and markets.

4. Border tensions: Increased military activity or conflicts between India and its neighbours, particularly Pakistan, can trigger risk aversion and volatility in the market.

5. Domestic political landscape: Upcoming elections in various Indian states and potential political instability could raise concerns among investors, affecting market sentiment.