InvestorQ : Can you share with me your trading view for the equity markets for 05 May? How to approach trading these markets?
Dhwani Mehta made post

Can you share with me your trading view for the equity markets for 05 May? How to approach trading these markets?

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diksha shah answered.
2 months ago
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If you look at the trade on 04 May, it still does look like a sell-on-rises market with 15,000 on the Nifty proving to be a major psychological resistance for the index. On Tuesday, there was unwinding visible in stocks like metals and pharma after a very sharp rally in the last few days.

Corporate results for Mar-21 quarter have been encouraging yoy but about 10% lower on sequential basis compared to Dec-20 quarter. For now, the COVID resurgence remains the macro headwind to watch out for. The mid-caps and small caps did relatively a lot better and that is where the alpha is for now.

Foreign portfolio investors continue to sell with a net equity sale of Rs.1,772 crore on 04 May even as domestic institutions bought Rs.987 crore of equities. FPIs have actually withdrawn Rs.7,500 crore or over $1 billion from equities just in the last 3 trading session since 30 April.

On Tuesday, the Dow closed flat to positive but it was technology that took a hit after Janet Yellen hinted at possible rate hikes soon. NASDAQ took deep 1.9% cuts even as European markets lost between 70 bps and 250 bps. SGX Nifty is 40 bps higher in early trades and Indian IT could see action on 05 May.

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