InvestorQ : How do you see the trading panning out in the Nifty and the Sensex on Tuesday 10th May 2022?
prachi Patwardhan made post

How do you see the trading panning out in the Nifty and the Sensex on Tuesday 10th May 2022?

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diksha shah answered.
1 week ago
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In a sense, the trend on Monday continued the bearishness we have seen for the last few days. It was a classic case of sell on rises sentiment having entered the markets. Post the results, Reliance stock was under pressure a lot of pressure and that sort of took the entire markets down with it on Monday. Only IT stocks managed to be a saving grace.

The breadth of the Nifty was unfavourable at 18:31 in terms of the advance decline ratio or the A/D ratio. As stated earlier, only the tech stocks held up amidst dollar strength. The VIX was up at 22.3 but the biggest concern now is the sharp fall in the Indian Rupee to Rs.77.50/$ levels. This is the lowest close for the rupee in its entire history.

Foreign investors sold Rs.3,362 crore as domestic funds and LIC bought stocks worth Rs.3,077 crore on Monday. FPI interest was limited in the LIC IPO too. Overall, global carnage continued with Dow down 654 points and the NASDAQ down 521 points on deep fears over the rate hike trajectory. Europe was down 2.5% while SGX Nifty is 50 bps lower.

In a sense, with the hawkish stance becoming the norm, the global technology stocks are leading the markets down. In India, with heavy FII selling, it remains a sell on rises market. Reliance is weakening the overall sentiments. Traders should avoid buying on dips and await key macros like India inflation data and the US inflation data this week.

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