InvestorQ : How do you see the market on Wednesday 28th September after the rather volatile trading day on Tuesday?
Juvina Maggie made post

How do you see the market on Wednesday 28th September after the rather volatile trading day on Tuesday?

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diksha shah answered.
3 months ago
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It was a rather disappointing close on Tuesday, as the Nifty closed about 9 point slower after remaining in the positive for most part of the day. It just it failed to sustain the rally during the day as selling pressure built up at higher levels. The only good news is that, the A/D ratio of the Nifty remained positive overall at 28:22.

On Tuesday, the selling was a lot more pronounced in the metals and auto stocks while the defensive plays like FMCG and pharma stocks held on to gains. Financials are still too uncertain, considering the overhang of the MPC meet starting on Wednesday. The monetary policy is likely to be announced on Friday.

Foreign investors were net sellers in equities to the tune of Rs.2,824 crore even as the domestic funds and LIC bought stocks worth Rs.3,505 crore on Tuesday. Domestic buying was more of support buying from the institutions. The FPIs could most likely end up being net sellers for the month of September overall, if this trend continues.

Global markets were rather mixed on Tuesday. In fact, on Tuesday, the Dow was down 126 points and NASDAQ was up 27 points with the techs showing some signals of recovery. European markets were negative on Tuesday while the SGX Nifty is under pressure trading down around 159 points in early trades. Sell on rises is the key trend for now.

The undertone of the market, as revealed on Tuesday remains a sell on rises market and that is unlikely to change till the policy announcement is made. The sectors like metals, PSUs and autos are likely to remain under pressure. However, the IT stocks may provide some amount of relief. For now, the focus shifts to the monetary policy on Friday, which is expected to announce a rate hike of 40-50 basis points, but could be the last of the cycle.

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