InvestorQ : Hi Diksha, what is your trading view for the stock markets on 02 September? Do you see selling in the markets today?
Arti Chavan made post

Hi Diksha, what is your trading view for the stock markets on 02 September? Do you see selling in the markets today?

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diksha shah answered.
3 months ago
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The correction on the first trading day of September was expected after the sharp rally of 8.7% in the Nifty in the month of August. On Wednesday, the Nifty closed about 56 points lower as there was routine profit booking visible in the markets. However, the advance / decline ratio or the A/D ratio also remained negative at 21:29 for the Nifty stocks.

If you look at the gainers for the day, they continued to be concentrated on the defensive FMCG stocks like Asian Paints and Nestle and that has been the trend in August too. In fact, some of the metal stocks continued to be under pressure but that is understandable after the sharp rally in the last few months. Banking is still tentative.

Foreign portfolio investors or the FPIs were net buyers worth Rs.667 crore on 01 September and thanks to the huge buying on the last day of August, they closed the month with relatively robust flow numbers. Domestic institutions surprisingly sold Rs.1,288 crore and now they have sold over Rs.3,000 crore in the last 2 sessions. Global markets are mixed.

For Thursday, the SGX Nifty is flat to positive in early trades. Indian markets may look to Asian cues for the day. However, the weekly options settlement will also have a bearing. It is still too early to call any form of correction in September because the VIX is still quite low and FPIs are still buying. But markets may be relatively range bound in September.

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