InvestorQ : How do you see the stock markets behaving on 11 November, Wednesday? Do you see the rally continuing or do you see it halting?
Debbie Mascarenhas made post

How do you see the stock markets behaving on 11 November, Wednesday? Do you see the rally continuing or do you see it halting?

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diksha shah answered.
2 weeks ago
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What has happened in the last few days is what you get to normally see in any bull rally. First, the institutions take the markets higher to a certain level and then the short covering comes in and traders push the markets further up. That is normal

The question is how much longer can this short covering sustain? That remains to be seen because very soon most of the shorts in the market will be covered. That is when the markets would really get tested, but one thing looks certain that Nifty stays above 12,000.

There have been no political surprises. Bihar has seen the NDA re-elected and the NDA combine has done extremely well in Madhya Pradesh by elections. That is a positive vote for stability and continuity and markets will be pleased that COVID has not had an impact.

Let me talk about foreign investors. FPIs were net buyers worth Rs.5627 crore on 10 Nov while DFIs sold Rs.2309 crore. FPIs have now infused Rs.22,000 crore in 5 days into Indian equities and have brought in $3 billion into India at a rapid pace. That is a big positive.

Global markets are also positive but surely the momentum is slowing. Dow is inching towards the 30,000 mark on Biden euphoria. European markets were also in positive even as NASDAQ continued to show negative returns. SGX nifty is trading above 12,700 levels in early trades on Nov 11. Signals are positive, but it is time to start being cautious.

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