InvestorQ : Hi Diksha, please tell me your stock market view for the 31st August 2021? Will we get past 17,000 on the Nifty?
Priyanka N made post

Hi Diksha, please tell me your stock market view for the 31st August 2021? Will we get past 17,000 on the Nifty?

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diksha shah answered.
3 months ago
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I don’t think that 17,000 should be a great resistance at the current pace. In fact, the next clear resistance is only at around 17,200 on the Nifty. So it looks like the relatively dovish tone of Jerome Powell has helped the Nifty and Sensex. The rally from 16,000 to near 17,000 has happened in one of the shortest spans of time.

Another positive trend of the market on Monday was that the Advance Decline ratio at 43:7 was decisively in favour of gainers and it sort of signalled an all-round rally. One key factor was the strengthening of the rupee to around 73.50/$ and that has also added to the positive sentiments in the market and also pushed the index higher.

After a long time, the FPIs returned to their buying ways in the Indian equity markets. FPIs were net buyers worth Rs.1,203 crore on 30 Aug while domestic funds bought Rs.689 crore. The previous week saw FPI selling of Rs.6,800 crore on fears of a hawkish stance at Jackson Hole. However, with Powell ruling out rate hikes for now, markets are happy.

On Monday, the DJIA was relatively weak but NASDAQ closed 90 bps higher. European markets were tepid albeit with a positive tone. The SGX Nifty, in early trades on Tuesday, is about 15 bps lower but that could be more a reaction to the rapid rally on Monday. My quick feel is that short covering could now take the markets to higher levels.

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