InvestorQ : How do you see the stock markets on 30 December Wednesday? Will we finally break the 14,000 mark on Nifty?
Arti Chavan made post

How do you see the stock markets on 30 December Wednesday? Will we finally break the 14,000 mark on Nifty?

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diksha shah answered.
3 weeks ago
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Let us not forget that the Nifty almost touched the 14,000 mark on Tuesday but later gave away gains to close at 13,932 levels. It also marked the fifth consecutive day of gains for the Nifty with the huge losses of 21 December more than compensated for.

Traders must be prepared for some caution on Wednesday. Late on Tuesday, it emerged that the US stimulus may end up being much smaller than originally anticipated. That led to the US markets giving up gains and there could be some impact on Indian markets too.

There was no let-up in foreign buying. FPIs were net buyers of Rs.2350 crore while DFIs sold Rs.2011 crore on Tuesday. FPI flows into equities in December 2020 exceeded the total inflows in the month of November. FPIs have infused record Rs.120,000 crore in 2 months.

As I said earl8ier, the Dow and the NASDAQ closed lower on Tuesday after the size of the stimulus was lower than anticipated. However, the UK FTSE was up 1.55% while the SGX Nifty is up around 35 bps in early trades. Asia could hold the key to Indian markets.

One final word! This stimulus may have been lower than expected and that could be a disappointment. However, there is sufficient liquidity in the system. Come January and you can also look for fresh global allocations by active and passive investors to India.

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