InvestorQ : How do you see the stock market trend on 10 December? Can the Nifty and Sensex scale from here or is time to get cautious?
Riya Dwivedi made post

How do you see the stock market trend on 10 December? Can the Nifty and Sensex scale from here or is time to get cautious?

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diksha shah answered.
5 months ago
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One thing that emerged in the midst of the sharp rally on Wednesday was the sector rotation as stocks outside traditional banking and IT pulled up the markets. While banks did support the Nifty, it has now decisively crossed 13,500 and the Sensex has crossed 46,000.

On Wednesday, there was a late correction in technology stocks like Facebook, Tesla and Zoom which led to a sharp correction in the NASDAQ. There were downgrades and also valuation concerns and that could rub off on the Indian IT stocks on Thursday.

Amidst all these debates, the flows from FPIs continued unabated as foreign investors infused Rs.3564 crore even as DFIs sold Rs.2493 crore on Wednesday. FPIs have infused over Rs.27,000 crore into Indian equities, in just the first seven days of trading in December.

The big news in global markets was the tech sell-off. Dow was lower and European markets were tepid but the NASDAQ fell by 2% over tech valuation fears. There has been downgrades and valuation concerns over Facebook, Tesla and Zoom.

It is hard to say whether the markets will correct, but it is better to remain cautious at such elevated levels and hedge your position with Nifty puts. The VIX is still at 18.9, so that hardly looks too threatening. There are no indications of a sharp correction from here.
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