InvestorQ : How do you see the stock markets for the trading on Monday 25th July?
Juvina Maggie made post

How do you see the stock markets for the trading on Monday 25th July?

diksha shah answered.
3 weeks ago

On Friday, the Nifty closed at 16,720 mark, which is a gain of 114.20 points for the day and a weekly gain of 4.3%, which is impressive. The breadth of market as measured by the A/D ratio was modest at 27:23. The week saw net FPI inflows but the concerns over FOMC oucome on the 27th July does remain an overhang for the market.

Among the big gainers on Friday were cement stocks like Grasim and Ultratech, although Grasim is more of a holding company. Even the HDFC twins rallied sharply and were among the top five gainers for the day as merger approvals were moving at rapid pace. Consumer stocks and IT stocks remained under pressure over margin concerns in Q1FY23.

FPIs net sold equities to the tune of Rs.676 crore while domestic funds and LIC bought stocks worth Rs.739 crore on Friday. FPIs have been net buyers in July so far. Meanwhile, Dow was down 138 points and NASDAQ down 226 points on Friday ahead of FOMC meet. SGX Nifty is trading negative in early trades with losses of 40 bps. FOMC could hold the key.

Regarding the outlook for the week, let us remember that last week rally was a combination of short covering and select buying in stocks at lower levels. As of now, the markets appear positive that the FOMC may hike rates by 75 basis points and then taper in the coming months. It would be more advisable to wait for the outcome of the FOMC meet.