InvestorQ : Can you tell me your broad view on the stock markets for 25 of November?
shrinidhi Rajan made post

Can you tell me your broad view on the stock markets for 25 of November?

diksha shah answered.
3 years ago

On Tuesday the Nifty decisively breached the 13,000 mark even as the BSE Sensex got past the 44,500 mark decisively. Even FPIs continued buying while the global markets hinted at continued bullishness. Markets are in a new price zone altogether.

Again, Tuesday was a day dominated by the banks and the infrastructure stocks in a big way. There was a mix of fresh buying and also short covering. With VIX continuing to stay low around 21 levels, markets are betting on 13,000 support to Nifty and 44,000 to Sensex.

FPIs are still buying like there is no tomorrow. They were net buyers to the tune of Rs.4563 crore while DFIs sold Rs.2522 crore on Tuesday. FPIs have now infused Rs.55,000 crore into equities in Nov-20 till date and it clearly looks Indian equities are in hot demand.

Fed has pointed to continued dovishness and hence the US and European markets gained more than 1.25% on Tuesday. The SGX Nifty is hinting at continued bullishness as global investors have turned sharply risk-on.

Broadly, once there is conviction that 13,000 is holding, you can look for much higher levels. This is a bullish market so adopt a buy-on-dips strategy and focus on the stocks that are going to drive the economy recovery. It is time for cyclicals now.