InvestorQ : Hi Diksha, can you share your market view for Tuesday 11 May?
Arya Nanda made post

Hi Diksha, can you share your market view for Tuesday 11 May?

diksha shah answered.
2 years ago

Monday continued the rally in the market since the COVID package announced by the RBI. In fact, on Monday Nifty closed just 58 points short of the 15,000 mark, which remains the big resistance. During the day, the Nifty made an attempt to cross 15,000 but failed to sustain above these levels. Metals continued to drive the rally in the markets.

In fact, the rally is now broadening from pure metals to include mining and other natural resources stocks too. There appears to be a sudden surge in interest in commodity stocks and mining stocks with as commodity prices rally on the LME. On Monday, even a staid player like Coal India was sharply in the market.

There was some respite on FPI action with foreign portfolio investors buying equities worth Rs.584 crore on Monday. In a small shift, domestic institutions sold Rs.476 crore of equities on Monday. However, if you take a slightly longer term view, FPIs continue to be net sellers in equities in May, just as in April. Conviction flows are still absent in the market.

On Monday, the Dow Jones index was in the positive but the tech-laden NASDAQ was down by over 2.4%. European markets other than UK were almost flat and the SGX Nifty is under pressure in early trades. It remains to be seen how the Nifty pans out on Tuesday after a sharp rally. Also, Thursday is a non-trading day in the Indian markets.