InvestorQ : What is your outlook for the Nifty and Sensex as we approach another weekend on 09 October 2020?
Rashi Mehra made post

What is your outlook for the Nifty and Sensex as we approach another weekend on 09 October 2020?

Answer
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diksha shah answered.
3 weeks ago


On the 08 of October, the rally for the fifth successive day was led by IT stock optimism. TCS, Wipro and HCL Tech continued to surge ahead supported by HDFC Bank and Ultratech. Nifty and Sensex have just crossed resistance levels of 11,800 and 40,000.

Friday could test whether the indices can stay above their resistance and that would set the trend for next week. Traders may be unwilling to carry forward positions into an uncertain weekend with so much political action. Dovishness of the policy will hold the key.

FPIs continued to be net buyers on 08 October to the tune of Rs.978 crore while DFIs bought Rs.19 crore. There is a clear shift in FII sentiments that brought back nearly 40% of fund outflows of the previous weeks.

Most global markets including Europe, Dow and the NASDAQ were around 50 to 70 basis points higher on Thursday. SGX Nifty is almost flat in early trades on Friday with just about 10 bps gain. A lot could depend on policy dovishness of the RBI.

With the week dominated by IT and pharma and the indices just above the resistance levels, stay wary of weekend trader caution. If the policy disappoints, there could be heavy selling.