InvestorQ : Can you tell me your overall view on the stock market for 28 January, being the F&O expiry date also?
Archita Jajjoo made post

Can you tell me your overall view on the stock market for 28 January, being the F&O expiry date also?

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diksha shah answered.
2 months ago
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It does look like the level of 50,000 on Sensex is proving to be a bugbear and offering resistance for the market. In the meanwhile, traders have turned to unwinding their long positions and global investors have turned wary after the delay in the American stimulus. A lot will depend on how the results pan out and VIX moves in the next few days.

On Wednesday, there was heavy selling across large caps and mid caps and most of the sectoral indices on the Nifty and the Sensex ended in the negative with the only exception being FMCG space. There has been visible stress in bank books in this quarter and Axis Bank was just the latest example. That now raises concerns over ICICI Bank results too.

Foreign portfolio investors or FPIs were net sellers to the tune of Rs.1,688 crore on 27 January while DFI flows were absolutely flat. The delay in the US stimulus appears to have taken its toll on the sentiments of international investors but it surely looks like the enthusiasm of November and December is gradually wearing away.

It was a day of heavy selling on 27 January across the global market. The Dow lost 2.1%, NASDAQ lost 2.6% while across Europe the markets were down over 1.5%. Asia has been no exception. IN early trades, the SGX Nifty is down nearly 1% and could rub off on the markets on Thursday. Large cap undertone looks weak.

The big question is whether this correction will endure. Most likely, the markets should stabilize here or slightly lower. That will depend on the VIX and also a smooth rollover on Thursday. Ideally, it would be better to wait for the new expiry as we could some unwinding pressure on this expiry on 28 Jan.

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