InvestorQ : Do you think the Biden effect is over for the time being? What is your stock market view for 09 November, Monday?
Arusha Ray made post

Do you think the Biden effect is over for the time being? What is your stock market view for 09 November, Monday?

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diksha shah answered.
3 weeks ago
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It is too early to say if the Biden effect is over. The euphoria is over because now it is almost a known fact as to who will be the next POTUS. However, now it will be about the announcements and the right noises made by Biden in his speeches.

The Biden effect took the markets sharply higher on Friday as Nifty closed at 12,263 on hopes that the new president would de-freeze trade tensions with China and also be more supportive of the Indian IT industry.

The only word of caution is on the rally that has already taken place with the Nifty gaining more than 600 points or over 5.5% in a single week. That makes the upsides limited and more vulnerable to any negative reactions at this point.

There is great news on the foreign investments front. FPIs were net buyers of Rs.4870 crore while DFIs sold Rs.2939 crore on Friday. FPIs have infused nearly Rs.12,000 crore in 3 days into equities even as mutual funds and domestic institutions remained net sellers.

In terms of global markets, the Dow and the NASDAQ toned down after the initial euphoria, Europe was a lot more sceptical on Friday. However, SGX Nifty is trading well above the 12,400 mark, hinting at another bullish day.

Ideally, trades should use this rally to exit positions in speculative stocks and enter into more stable stocks. The shift should also from mid caps and small caps towards large caps. Focus on pharma, IT and FMCG, where results have been great till date.

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