InvestorQ : How do you see the stock market outlook for 18 November and why are the markets still correcting?
Arusha Ray made post

How do you see the stock market outlook for 18 November and why are the markets still correcting?

Answer
image
diksha shah answered.
3 weeks ago
Follow

In the last 2 days, the Sensex lost 600 points and the Nifty closed below 17,900. While inflation and bond yields are factors, the markets have been spooked in the last 2 days after the RBI expressed worries about the equity valuations in India in its monthly RBI Bulletin. This view was expressed by the RBI after a slew of brokers including Morgan Stanley, Goldman and Nomura downgraded Indian equities from Overweight to Neutral.

On Wednesday, the Nifty closed at 17,898 and Thursday is the last trading day of the week, with Friday being a market holiday on account of Guru Nanak Jayanti. Hence, one can expect some volatility due to weekend caution in the markets as traders would prefer to stay light ahead of a long weekend. The A/D ratio continued to be unfavourable at 15:35 but the good news for the Nifty is the low VIX that is now around the 14 levels.

Foreign investors net sold Rs.344 crore of equities while domestic funds sold Rs.61 crore of equities on 17-Nov. There seems to be some caution after RBI sounded valuation warning. In the US markets, Dow fell 60 bps and NASDAQ fell 33 bps. The UK based FTSE was weak after UK inflation came in at a high of 4.2%. In early trades, the SGX Nifty trades cautiously about 6 bps lower. Correction could deepen on 18-Nov, being the last weekly trading day.

0 Views