InvestorQ : How do you see the stock market outlook for 04th January and why did the stock markets bounce so sharply on Monday?
Arusha Ray made post

How do you see the stock market outlook for 04th January and why did the stock markets bounce so sharply on Monday?

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diksha shah answered.
4 months ago
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On the first day of trading in the year 2022 i.e. 04-January, the Nifty closed with gains of 272 points at 17,626 levels while the Sensex was up 929 points. Both the indices built on their gains of Friday. It surely looks like the markets have made a strong statement that the underlying trend remains up, irrespective of inflation concerns.

Even the market structure was very strong on Monday. The advance decline ratio was strongly positive on Monday at 44:6 for the Nifty even as the fear index of the India VIX edged marginally higher to 16.45 levels. The big gainers on Monday were Coal India, Eicher, Bajaj Finance as sector rotation was seen. Pharma stocks came under strain.

For a change, the FPIs were buyers in equities of Rs.903 crore while domestic funds and LIC bought stocks worth Rs.803 crore on 03-January. Last 2 days, FPIs showed positive sentiments. In global markets, Dow and NASDAQ were sharply higher as Apple touched the $3 trillion mark for market cap. SGX Nifty is flat to negative in early trades.

In terms of outlook for Tuesday, the SGX Nifty is not giving any clear indication but that was the case on Monday too. Clearly, markets are betting on the quarterly results that if the numbers come in smartly higher with Nifty EPS at closer to Rs.873, then valuations may still look quite compelling. For now, traders can still use dips to buy into this market.

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