How do you see the stock market on Tuesday 11th January 2022? Can the Nifty sustain above 18,000 levels?

On Monday, it was another strong day of rebound for the markets as the Nifty gained 190 points to close above the psychological level of 18,000. This was notwithstanding the global concerns over the extremely hawkish view on rates that was put out in the US markets by Goldman Sachs. It had suggested that there could be 4 rate hikes in 2022 itself.

On Monday, the Nifty was structurally in the positive as it gained a good 190 points. The depth of market indicated by the advance decline ratio was firmly in the positive on Monday at 35:15. At the same the VIX was almost flat at 17.68 levels. Among the major gainers on the Nifty were UPL, Hero Moto, Titan, Maruti and SBI.

Foreign Investors were marginal net sellers in equities of Rs.124 crore while domestic funds bought Rs.482 crore on Monday. A clear FPI view is yet to crystallize. Meanwhile, Dow was 163 points lower even as NASDAQ recovered from deep cuts to close flat on Monday. Europe was deep in the red and the SGX Nifty is also weak in early trades.

I would believe that Tuesday could see some pressure coming from the markets due to Goldman pencilling in about 100 bps rate hike in 2022, although the Indian markets are more or less prepared for the same. There should some bounce overdue in the digital stocks after the sharp cuts in the last few days. GMV has been extremely attractive.