InvestorQ : How do you see the stock markets for Monday 18th July 2022?
Rashi Mehra made post

How do you see the stock markets for Monday 18th July 2022?

diksha shah answered.
4 weeks ago

On Friday the 15ths of July, the Nifty closed at 16,049 mark with A/D ratio in the positive at 35:15. The rupee almost touched 80/$ and gained in late trades only due to RBI intervention. Howeve,r despite the strong RBI intervention it looks all set to go beyond the 80/$ mark during the forthcoming week.

Consumer stocks are attracting a lot of defensive interest in the market of late. Among the major gainers on Friday were Tata Consumer, Hindustan Unilever and Titan. Tata Steel, Powergrid and HCL Tech were among the major losers. Since the announcement of TCS results, IT has been under a lot of pressure last week due to sharply higher attrition levels.

FPIs net sold Rs.1,649 crore while the domestic mutual funds bought stocks worth Rs.1,059 crore on Friday. FPI selling in July at $1 billion is much lower than $6.3 billion in June. In global markets, Dow was up 658 points and the NASDAQ was up 201 points on Friday. Europe was up 2% while the SGX Nifty is up 110 bps in early trades on Monday.

Regarding market view, the big question mark is over whether the US Fed would end up hiking the rates by 100 bps instead of 75 bps. That is ridky and brings about a bigger chance of recession for global markets. It may also force the RBI to turn more hawkish. A small warning is that the low VIX may be misleading, unless there is a genuine macro shift.