InvestorQ : What is your trading and investment view in the Indian market for 22 June? Was the rally from lower levels for real?
Dia Deshpande made post

What is your trading and investment view in the Indian market for 22 June? Was the rally from lower levels for real?

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diksha shah answered.
4 weeks ago
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On the first day of the trading week on 22 June, the Nifty began almost 150 points lower in line with global cues. However, once the initial global sympathy was done and dusted, the market staged a sharp recovery in the second half. The recovery was largely led by SBI, Titan and most of the Adani stocks as the fears of an imminent rate hike looked to recede.

On Monday, the up-move in the market was clearly tilted towards the cyclicals with most of the defensive stocks either tepid or ending lower in trades. In support was the low levels of the volatility index or VIX at around 14.5 levels. That has been a big support for the market and has been hinting at buying support at dips.

For a change, the FPIs were on the selling side on Monday after hard buying for the first three weeks of June 2021. FPIs sold out Rs.1,225 crore worth of equities on 21 June even as domestic institutions bought equities worth Rs.138 crore. However, the FPI flows in June have marked a stark turnaround from the April and May levels.

It was an absolute super Monday for the Dow Jones Index gaining nearly 600 points in trade and well supported by the NASDAQ index. European markets like the DAX, CAC and the FTSE were also showing signs of recovery after the chances of Fed hiking rates in the near future appeared to recede. SGX Nifty is up 55-60 bps in early trades and promises a good start.

In terms of trading strategy, focus should still be at stock level with Nifty likely to take support around 15,500 levels. Rate hikes in the US have been negative in the short run in India but in the medium term, we have observed a degree of positivity to such cues.

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