InvestorQ : How do you see the trading view for the stock markets on 18 May and do you see the rally in Nifty sustaining?
Dia Deshpande made post

How do you see the trading view for the stock markets on 18 May and do you see the rally in Nifty sustaining?

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diksha shah answered.
1 month ago
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The Sensex closed on 17 May with gains of over 800 points while the Nifty got close to the 14,900 mark. Of course, the level of 15,000 will remain the big resistance for now. However, while the number of afflictions are coming down, there appears to be no respite in the pace of vaccinations picking up. That remains a long term risk.

Normally, 17 May has been a negative day for markets if you look at the last 20 years. However, on Monday, the bounce in stocks was led by the banking sector which can be largely attributed to short covering. The lack of foreign institutional buying support indicate that the bounce was more of short covering in banks after too many shorts were built.

As I mentioned, foreign investors remained on the sell side net selling of Rs.2,256 crore even as domestic institutions bought Rs.1,948 crore worth of equities. Already, if you look at the first 12 trading sessions of the month, the May selling is getting close to the Rs.10,000 crore mark and that is not very encouraging as far as markets are concerned.

On Monday, most of the markets across the US, NASDAQ and Dow, were in the negative even as European markets saw smaller cuts. The SGX Nifty is up in early trades and it remains to be seen if short covering can be sustained. That remains the big challenge as it also fights COVID on one hand.

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