Risk-on mood in market triggered by hope that Israel-Hamas conflict won’t spread

There is a risk-on mood in the market triggered by the hope that the raging Israel-Hamas conflict will not spread, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

US President Joe Biden’s upcoming trip to Israel and Jordan and the two American aircraft carriers sent to the Eastern Mediterranean is a clear message to Iran and Hezbollah not to intervene in the war, he said, adding that the market hopes the war will remain localised, and this is the reason why the market remains hopeful.

The HDFC Bank results, particularly the bullish guidance and commentary, are positive and the bank, which has the highest weightage in the Nifty, can support the market. Results from the other leading banking names too will be good. Capital goods and autos continue to be on strong wicket, he said.

Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher, said Nifty overall witnessed a rangebound session with flat closing near 19,750 levels with the broader markets performing well and volatility is anticipated with the result season going on.

As mentioned earlier, the index needs to maintain the near-term support zone of 19,600 levels while on the upside 19,850 zone is acting as a resistance barrier which needs to be breached decisively.

The support for the day is seen at 19,600 levels while the resistance is seen at 19,900 levels.

BSE Sensex is up 334 points at 66,501 points on Tuesday. Powergrid and ITC are up more than 1 per cent.