InvestorQ : How do you see the stock markets turning out on Thursday, 13th October 2022?
Dhwani Mehta made post

How do you see the stock markets turning out on Thursday, 13th October 2022?

diksha shah answered.
2 months ago

On Wednesday, the Nifty gained 140 points as the benchmark settled at 17,123 levels. For now the level of 17,000 continues to be the key pivot and could be the deciding factor for future movement in the index. With inflation higher and IIP lower, there could be pressure on the markets on Thursday and Friday in the current week.

Fed minutes announced late on Wednesday have remained hawkish, but markets sense some concern over faltering growth and rampant inflation. That could be positive for the markets, albeit small. On Wednesday, the advance decline ratio stood at 42:7 with PSU stocks like Powergrid and Coal India guiding the stock market rally sharply higher.

Foreign portfolio investors of the FPIs were net sellers in equities at a level of Rs.542 crore while the domestic funds and LIC bought stocks worth Rs.85 crore. FPIs started October on a positive note, but it looks like selling has once again taken over. Hawkishness from the Fed has hardly helped matters for the time being and expect them to stay on the selling side.

On Wednesday, the Dow lost 28 points and NASDAQ lost 9 points as the global markets staged a smart comeback after the Fed minutes were announced with remote possibility of the Fed rethinking on its policy. Europe was weak and the SGX Nifty is down 38 points in early trades. Weak IIP and Inflation data could be the overhang for Indian markets.

The big concern in the markets for Thursday will be the weaker than expected IIP and inflation data announced on Wednesday. While consumer inflation surged to 7.41% for September, the IIP for August 2022 contracted by -0.83%. It does look like the RBI may have to rethink its strategy now. The stock market focus will continue to be buying into domestic plays and selling out of global plays like IT and metals. US inflation will be announced late on Thursday and that is also likely to have a rub off effect. Be cautious about markets this week, especially considering these are the last 2 days of the week.