InvestorQ : Can you tell me your stock market view for the 26 of November and how do you see the market on expiry day?
Arusha Ray made post

Can you tell me your stock market view for the 26 of November and how do you see the market on expiry day?

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diksha shah answered.
6 months ago
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The correction on Wednesday was long overdue and had to happen. The F&O expiry and the level of 13,000 on the Nifty just gave the market an excuse for the markets to correct sharply from higher levels. However it does look like routine correction.

On Wednesday the Nifty lost 197 points and the Sensex close to 700 points. The indices stayed weak all through the day. The sharpness of the correction was evident from the fact that 11 out of the 12 sectoral indices closed with losses.

After the frenetic rally, the correction was expected, in a way. It had virtually been a one-way rally from 11,600 onwards and profit booking was going to happen just a day before the F&O expiry. We need to see if the buying continues from Friday onwards.

There was some let up in the FPI numbers on Wednesday as they infused just Rs.25 crore while DFIs sold Rs.1840 crore. Analysts and fund managers have been warning that the MSCI re-rating rally and the Biden driven rally may be on its last legs, so that was expected.

Global cues are rather mixed. The Dow Jones index took a hard knock of over 175 points on Wednesday as markets were largely mixed across Europe and most of Asia. The SGX Nifty traded 45 basis points higher in early trades but F&O unwinding was the message.

I had maintained in the last few days that 13,000 level of the Nifty will be the crucial resistance for the market and any decisive move will come up based on whether 13,000 crystallizes as a support or a resistance. That should be evident in the next few days.

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