InvestorQ : Hi Diksha, how do you see the stock markets on 02nd June? Will the correction continue or can I expect a bounce?
Tisha Malhotra made post

Hi Diksha, how do you see the stock markets on 02nd June? Will the correction continue or can I expect a bounce?

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diksha shah answered.
8 months ago
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The weakness in the stock markets continued for the second day in succession on Wednesday, although the cuts were not too deep. There is a lot of uncertainty over the fact that rates could go higher and growth could slow. June policy could hold the key and that is likely to be announced in the coming week and could hold the key.

In terms of the market structure, breadth of the Nifty as measured by the advance decline ratio was negative at 19:31 on Wednesday. Gainers were in the commodity space while losers were from Bajaj group. The volatility index or VIX scaled above 20.58 levels during the day. Markets should take heart from the fact that fiscal deficit is lower.

FPIs net sold equities worth Rs1,930 crore as domestic funds bought stocks worth Rs984 crore on Wednesday. In terms of international market trends, Dow closed 177 points lower on inflation concerns while NASDAQ was 87 points lower. Amidst rising inflation, even Europe lost over 0.75%. SGX Nifty is flat to negative in early trades on Thursday.

In the next few days, Nifty will test whether it can hold the 16,400 level which it had broken on the upside quite rapidly. If that level is breached then 16,800 could be a level to target for on the Nifty. To me the correction may not really deepen from higher but the market remains a sell on rises market. You can trade accordingly.

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