InvestorQ : What is your trading and investing view on the market for the 18 November 2020? Do you see correction in the Nifty happening soon?
sara Kunju made post

What is your trading and investing view on the market for the 18 November 2020? Do you see correction in the Nifty happening soon?

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diksha shah answered.
1 week ago
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It is hard to say if there is likely to be an correction in the Nifty in the near future. One thing looks possible is some resistance for the Nifty at around 13,000 levels, But with the VIX remaining so low, it does look quite unlikely that there could be a sharp correction.

The Nifty closed on Tuesday at the 12,875 levels supported largely by the banks and insurance companies leading the rally. It looks like 13,000 may be the first serious halt and then short covering could taper. As of now it looks like bulls are in firm control.

Strategically, one sector to dig for value would be the PSUs. With most PSU stocks looking undervalued, there is value buying interest building up in these counters. The focus will shift to PSUs with a good visibility in coming quarters and PSU banks must be watched for.

On the foreign investments front, the India story continues to remain supreme. FPIs were net buyers to the tune of Rs.4905 crore while DFIs sold Rs3829 crore on Tuesday. FPIs have infused over Rs.40,000 crore in the first two weeks of November and is the key driver.

Dow trades lower while NASDAQ is flat. European markets are flat to negative. The SGX Nifty is positive in early trades but a lot will depend on the Asian markets on Wednesday. In the absence of domestic triggers, Asian markets could be crucial.

This is the market to ideally maintain a stock specific approach. It is tough to call the index considering that it is near to our original target of 13,000 on the Nifty. It is best to book profit at regular intervals and stick to the growth stories.

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