InvestorQ : What is your market outlook for Friday, 06 November and do you still feel the US elections will impact the stock market Nifty and Sensex?
Arti Chavan made post

What is your market outlook for Friday, 06 November and do you still feel the US elections will impact the stock market Nifty and Sensex?

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diksha shah answered.
4 weeks ago
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If I may sum it up, then Thursday was a day of a fascinating rally on markets. It was actually surprising to see the Sensex rally by 724 points on a single day in response to Joe Biden getting closer to occupying the White House. Markets were betting on global certainty as the key trigger and we really cannot question the market logic.

The rally on Thursday was across the board including heavyweights like Reliance Industries, IT companies and the banking stocks. The rally looks set to continue for now as short covering will now play a bigger role in holding stocks up. Also, the VIX is still quite low so no worries about market supports.

The big news was the FII flows into India. For example, FPIs were net buyers to the tune of Rs.5368 crore on Thursday while DFIs sold Rs.2208 crore. Foreign investors pumping in close to $750 million into frontline stocks does not occur daily and there is surely some kind of rethink on India that is happening.

Even global markets have been extremely supportive. Dow Jones index was up 2% and the NASDAQ was up 2.5%. Europe is also celebrating the Joe Biden victory while the SGX Nifty has been cautious. As I said earlier, it could be all about short covering today on Friday. However, look take profit in positions that have rallied very sharply.

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