InvestorQ : What is the market outlook for Tuesday 08th February after the sharp market correction on Monday?
rhea Babu made post

What is the market outlook for Tuesday 08th February after the sharp market correction on Monday?

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diksha shah answered.
3 months ago
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On Monday the 07-February, Nifty gave up more than 300 points and Sensex gave up more than 1,000 points amidst thinner volumes. Bond markets and money markets were shut on Monday on account of the state mourning declared in Maharashtra, although equity markets functioned. The markets fell due to weak buying support in the markets.

The fall was also reflected in the negative advance / decline ratio of 8:42. At the same time, the panic in the markets appeared to be high with the VIX spiking sharply by 8.5% to the 20.44 levels. It will be critical to see if this level is sustained in the coming days, since normally the VIX has shown a tendence to taper after crossing the 20 levels.

FPIs net sold equities worth Rs.1,157 crore and domestic funds sold stocks worth Rs.1,377 crore on 07th February. FPIs have already sold $1 billion in Feb-22, $4.5 billion in Jan-22 and nearly $11 billion in last 120 trading days. Globally, Dow closed flat while NASDAQ ended 82 points lower. While Europe was strong, SGX Nifty is marginally up 16 bps in early trades.

I think the markets bide their time till the monetary policy is announced on Thursday 10-February. The monetary policy had to be put off by a day. Any signs of hawkishness by RBI would be seen as a negative signal. With most results out, the focus now shifts to the minutes of the US Fed, where the first rate hike indications are expected to be given.

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