InvestorQ : What is your Dalal Street view on 24 November trading? What is there to look forward to now in the markets?
Debbie Mascarenhas made post

What is your Dalal Street view on 24 November trading? What is there to look forward to now in the markets?

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diksha shah answered.
6 months ago
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The markets continue to remain delicately poised very close to the levels of 13,000. In retrospect, the Nifty has rallied from around 11,600 levels to almost 13,000 levels in a little over a month. That is a very rapid rise and it does call for some amount of caution.

On Monday, the Nifty index closed strong at 12,926 and it is less than 75 points from the psychological mark of 13,000. VIX continues to be subdued around the 20 mark although the markets did gyrate quite sharply due to the unprecedented levels it is trading at.

The markets could continue to be volatile till the time some clear signals on direction of the market come out via the core sector numbers and the Purchase Manager Index. Keep a watch on the FOMC meet to see if the Fed continues to give a dovish stance.

There was no let up in foreign investments even on Monday. The FPIs infused Rs.4738 crore while DFIs sold Rs.2944 crore on 23 November. These FPIs have by now infused close to Rs.55,000 crore in November 2020 as compared to Rs.35,500 crore in first 7 months.

Global cues from the West are not too encouraging. Most of Europe and the US Dow and NASDAQ have been in flat to negative territory. However, rest of Asia appears to be in fine fettle with Japan over 2% up. SGX Nifty is also flat to negative and await Asian cues.

The level of 13,000 will remain a major bottleneck for the market for the time being but the focus will now shift to more stock specific stories. The macro story may be largely done and dusted for now.

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