InvestorQ : What is your view regarding the stock market outlook for Monday 15 February? Do you see the Nifty and Sensex trending higher from here?
Rashi Mehra made post

What is your view regarding the stock market outlook for Monday 15 February? Do you see the Nifty and Sensex trending higher from here?

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diksha shah answered.
5 months ago
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On Friday, the two major indices viz. the Nifty and the Sensex moved decisively above the psychological resistance levels of 15,100 and 51,000 respectively. For now, that does look like a confirmation. The call accumulation action has been shifting to 15,500 so that leaves sufficient headroom left for the indices to move higher without any hindrance.

If you were to look at the January 2021 mutual fund trade data it clearly indicates that the action appears to be shifting to the laggards inside the various outperforming sectors. For example, Tech Mahindra in IT is playing catch up and Axis Bank in banking is also playing catch up. That could be the theme to pick stocks as we go ahead this week.

FPIs were net sellers to the tune of Rs.37 crore on Friday but that appears to be more of an aberration than a trend, even as DFIs sold Rs.598 crore on 12 Feb. The FPI selling actually comes on the back of close to Rs.21,000 crore infused into equities in the first 15 days of February 2021, so the momentum still looks to be favouring FPI bullishness only.

In terms of global markets, there is some search for direction in the absence of clear triggers. The Dow was flat gaining around 27 bps while the NASDAQ gained 50 bps on Friday. European markets like CAC, FTSE and DAX gained 60-70 bps in Friday trades. SGX Nifty is also trading around 20 bps higher in early trades and it is best to await Asian cues.

A better strategy in this market may be adopt a buy on dips approach as that would give more margin of safety in a tough market. This is a market where valuations are high and are likely to remain high for some time. The best you can do as a trader is to bargain for some margin of safety. Use dips to buy good ideas.

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