InvestorQ : What is your opinion on the stock market direction after the rally on Tuesday? Do you see the Nifty crossing 12,000 levels?
Arusha Ray made post

What is your opinion on the stock market direction after the rally on Tuesday? Do you see the Nifty crossing 12,000 levels?

Answer
image
diksha shah answered.
2 months ago
Follow

You are right that the bounce on Tuesday was much sharper than anticipated. Nifty bounced by over 150 points and the Sensex by over 550 points due to a combination of short covering and fresh buying in financials. Markets of the US and Europe were supportive too.

The big result announcement on Tuesday is SBI for the Sep-20 quarter. Going by the trends of major PSU banks till date, it should be a real positive surprise. That could set the trend for PSU banks, which have been relative underperformers in the market, unlike private banks.

It does look like FII buying is back in the market. They were net buyers to the tune of Rs.2,724 crore while DFIs sold Rs.1,101 crore on Tuesday. After a few days of uncertainty FPIs are back with a vengeance in the Indian markets and that is a positive.

The biggest cue could be from global markets like Dow and the NASDAQ which were around 2% higher on Tuesday. The market expectations of a Biden victory enthused the US and even European markets. SGX Nifty is a tad cautious in early trades, but it could celebrate too.

The rally now looks to have enough wings for the Nifty to cross the 12,000 mark. The first indication comes from the fact that the Sensex has decisively broken above the 40,000 mark on Tuesday and that is a good psychological signal.

9 Views