InvestorQ : What is your view on the stock market trading for 27 November after the sharp bounce on Thursday? Do you see that as a positive?
Niti Shenoi made post

What is your view on the stock market trading for 27 November after the sharp bounce on Thursday? Do you see that as a positive?

Answer
image
diksha shah answered.
10 months ago
Follow

You are absolutely right about the bounce in the markets. The losses of Wednesday virtually got wiped out on Thursday as an uneventful F&O expiry took the Nifty to 12,987; within touching distance of 13,000 levels. We could see a decisive break above 13,000 on Friday.

Markets were buoyed by the Fed minutes announced on Wednesday late night which was substantially accommodative with the Fed assuring bond buying would continue well into 2021. Friday is the Q2 GDP announcement date and a positive surprise is expected.

On Thursday, foreign investors were back in business. FPIs were net buyers to the tune of Rs.2027 crore while DFIs sold Rs.3400 crore. MSCI rally may be in its last legs, but buying continued in select stocks. Improvement in macros appears to be a big story for FPIs.

Globally, the Dow was in pressure on Thursday by 60 bps as the Fed minutes appeared to confirm a slowdown but that is understandable. NASDAQ was flat and Europe was mildly negative. SGX Nifty is trading flat in early trades and the cues from Asia could be crucial.

To answer your question on the bounce, let me look at the VIX. Stock markets displayed resilience as indicated by the sharp 14% fall in the VIX back to the 20 levels. That surely is a confidence booster hinting that downsides are limited and it is buy-on-dips.

3 Views