InvestorQ : How do you see the stock markets for the 19 November since the Nifty is getting very close to 13,000? What should be the strategy?
Ria Jain made post

How do you see the stock markets for the 19 November since the Nifty is getting very close to 13,000? What should be the strategy?

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diksha shah answered.
1 week ago
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As I write, the Nifty has come very close to 13,000 and the Sensex is actually inching towards 45,000. The stock market has rallied nearly 14% in the last 3 weeks and that is a lot of returns in a very short time. You firstly need to keep that in mind.

On 18 November, Nifty closed at the levels of 12,938 with M&M as well as Tata Motors fuelling the rally in a big way. L&T has also been doing well of late on the back of solid order flows and a very healthy order book positions, especially from the Bullet Train Corridor.

Watch out for the technical levels of 13,000 on the Nifty and later for confirmation look for 45,000 on the Sensex. The breach of both these levels will be suggestive of a strong bounce and must be supported by equity earnings and macros too. Yes, there are signals for now.

One big trigger has been the FPI flow. The FPIs were net buyers to the tune of Rs.3072 crore while DFIs sold Rs.2790 crore on Wednesday. FPIs have already infused Rs.45,000 crore into the markets in the first 12 trading sessions of November; 20% more than Apr-Oct period.

On Wednesday, there were signs of slackening of the global rally at higher levels across the globe. The Dow, NASDAQ and the European market were lacklustre. The SGX Nifty is under pressure in early trades and we could see the first signs of pressure on Nifty.

For the time being we only have visibility on the Nifty till 13,000 and on the Sensex till 45,000. The rise has been rapid and that has been supported by FPI numbers and quarterly earnings. With triggers done, the risk-reward ratio is technically not favorable. But, market is the king, after all.

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