InvestorQ : How do you see the stock market panning out on Monday 30th May 2022? Will the rally in the markets continue?
Deepa Salunkhe made post

How do you see the stock market panning out on Monday 30th May 2022? Will the rally in the markets continue?

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diksha shah answered.
2 months ago
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On Friday the 27th of May, Nifty gained 182 points and closed the week with 1% gains. The big driver for the week were the banking stocks and the auto stocks; essentially rate sensitives. For the week, banks were up 4% and auto sector up 3.3% as the government strong fight against the inflation problem is expected to show positive results soon.

The breadth of Nifty turned decisively positive at an advance decline ratio of 35:15 on Friday. The big gainers were the financials, metals and IT stocks which bounced back very sharply. Healthcare stocks also rebounded, helped by Apollo Hospitals which rebounded from losses to gains. VIX fell more than 5.4% on Thursday to 21.48 levels.

Foreign investors net sold Rs.1,943 crore in Indian equities even as domestic funds and LIC bought stocks worth Rs.2,272 crore on Friday. For May, FPIs sold equities worth Rs44,000 crore and DFIs bought Rs47,000 crore. One possible trigger for the FPIs to return to Indian markets could be the GDP data to be announced on Tuesday this week.

Global cues were extremely positive on Friday, as the Dow closed 576 points higher and NASDAQ 391 points higher on the back of Fed flexibility and strong hopes of a China recovery. In early trades on Monday, Tokyo and KOSPI gained over 1% while the SGX Nifty is 100 bps up on Monday morning. US markets are shut on Monday for Memorial Day.

The Nifty and Sensex have gained sharply in the last two days, but the level to watch for is 16,400. It will be critical for Nifty to breach above this level as only that will confirm the uptrend. The fight against inflation appears to be working and that is good news. However, traders must be cautious about not getting caught in negative sentiments on the GDP front.

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