InvestorQ : How do you see the Nifty and Sensex on Friday, 08 January? Do you see the index rallying on Friday?
Arusha Ray made post

How do you see the Nifty and Sensex on Friday, 08 January? Do you see the index rallying on Friday?

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diksha shah answered.
5 months ago
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You would have noticed that markets were relatively volatile on Thursday but then the metals sector consisting of stocks like Tata Steel and Hindalco remained buoyant on higher domestic demand on the back of growth revival. The GDP advance estimates are likely to be positive for the markets as a whole, especially for industrial demand.

Nifty has crossed 14,000 and Sensex has now crossed 48,000 decisively. Most likely, we could see some consolidation around these levels before the market makes its next move. Actually, the markets will await a genuine trigger like a sharp profit growth in Q3 results or fresh FPI flows before making the next move. Moves could be more stock specific now.

Foreign buying in January has been relatively tepid compared to November and December. However, that was expected as January is normally the time when strategies and allocations are finalized. FPIs were net buyers to the tune of Rs382 crore while DFIs sold Rs.990 crore on Thursday. Of course, the domestic selling shows no signs of abating.

Thursday was all about the NASDAQ which rallied a massive 2.6% in a single day crossing the psychological barrier of 13,000. That has already triggered positive vibes across Europe and the rest of Asia in early trades on Friday. Even the benchmark SGX Nifty is up 60 bps in early trades on Friday, mirroring the hopes of the rest of Asia.

The GDP advance estimate for the financial year 2020-21 pegs the GDP contraction for the full year at -7.7%. This is largely along expected lines and most brokers and rating agencies had been consistently upgrading the GDP contraction forecast for India. From here on, anything better than the contraction of -7.7% could be a major boost for the markets.
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