InvestorQ : Can you outline you major trading view for Friday 21 May?
sarah Leo made post

Can you outline you major trading view for Friday 21 May?

diksha shah answered.
2 years ago

Thursday trading began on a flat note but selling gathered momentum through the day and at the end of trading, Nifty closed 124 points lower at 14,906. Of course, it was once again the psychological barrier of 15,000 that pulled the plug on the rally. It was the metals and commodity stocks that actually led the fall on 20 May.

The Fed minutes announced on Wednesday night were largely emphatic about the need to maintain accommodation. However, the minutes did raise the possibility of tapering of bond buying if macro data justified it. The sharp fall in the Indian markets on Thursday was also a reaction to this liquidity drain that it could cause.

FPIs bought a marginal Rs.71 crore on 20 May even as domestic institutions sold Rs.876 crore in equities. In fact, in the last few days, domestic institutions have turned to become net sellers in equities. It remains to be seen if this trend sustains in the coming days, as they were providing the support to markets in the last few weeks.

The good news is that global markets bounced on Thursday after a tepid Wednesday. The US and European markets rebounded by more than 1.3% in late Thursday trade as most markets celebrated that rate hikes were unlikely in the near future, even if tapering was a possibility. SGX is up 70 bps in early trades but Friday pressure will be real.