Will it be another muted September for Dalal Street?
Indian equity investors might face a lackluster September, as historical trends indicate a subdued market performance. Data reveals that key indices like Nifty 50 and Nifty 500 have often declined during this month over the past decade. Technical ...
Taparia added that while the Dow Jones and S&P 500 are heading to fresh highs alongside gains in gold and silver, the rupee is at lifetime lows.
Mumbai: Indian equity investors may have little reason to cheer this month, as historical seasonality trends suggest September is typically subdued for markets. The Indian stock market hit peak levels last September before entering a phase of sharp swings.
Data from Motilal Oswal Financial Services showed that the Nifty 50 and Nifty 500 indices have ended lower in six of the past 10 years, falling an average 0.38% and 0.33% in September, respectively. "As per seasonality trends, the September series usually remains dull," said Chandan Taparia, head of technical and derivatives research at Motilal Oswal Financial Services.
Taparia said the immediate structure of the indices is "slightly negative".
"Till Nifty remains below 25,000 zones, upside could be capped with major support at 24,000 levels."
US benchmarks also show a weak seasonal trend, with the S&P 500 and Dow Jones Industrial Average declining in six of the last 10 years, while the Nasdaq 100 has slipped in seven out of 10 instances.
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Taparia added that while the Dow Jones and S&P 500 are heading to fresh highs alongside gains in gold and silver, the rupee is at lifetime lows.
GIFT Nifty signals muted start for Dalal Street amid cautious trade
