InvestorQ : What market trend do you see for 05 March after 3 days of bounce and 1 day of correction? Do you see the markets correcting further on Friday?
Aashna Tripathi made post

What market trend do you see for 05 March after 3 days of bounce and 1 day of correction? Do you see the markets correcting further on Friday?

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diksha shah answered.
1 month ago
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Thursday was like a return to reality for the markets. After the Sensex had gained nearly 2000 points between Monday and Wednesday, there was a sharp correction on Thursday although Nifty did sustain above the 15,000 levels. The US bond yields hardened and it was a mix of delivery selling and long unwinding as traders preferred to stay light.

The big story in these tough markets have been cement stocks, with most of them at yearly highs in the recent few days. The frontline cement stocks including Ultratech, Ambuja and India Cements have all scaled fresh 52-week highs. It was largely the South and East based companies that saw the maximum price traction due to demand/supply mismatch.

Foreign portfolio investors or FPIs were net sellers to the tune of Rs.223 crore while DFIs sold Rs.788 crore on Thursday, which has been the trend in the last few days. FPIs had been consistent buyers in the current week and had infused nearly Rs.4500 crore. However, the FPIs are clearly being wary of rising global bond yields and its likely impact on equities.

There was correction across most of the key indices. The sharp fall was visible by 1.1% on the Dow but a much sharper 2.2% on NASDAQ as bond yields once again shot up after a brief tapering. Europe was mixed on Thursday but Asia came under pressure and the SGX Nifty is again showing weakness of over 100 bps in early trades on Friday.

For Friday, the markets are likely to weak to cautious as traders unwind leveraged positions and go easy in the market. The reduced leverage in the light of the new margin rules is also taking its toll. But traders are likely to be cautious over the weekend, rising bond yields in the US and a truncated next week of trading.

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