InvestorQ : What is your market view for 03rd November? How do you see the market panning out ahead of Muhurat Trading?
Arusha Ray made post

What is your market view for 03rd November? How do you see the market panning out ahead of Muhurat Trading?

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diksha shah answered.
1 month ago
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On Tuesday, the Nifty closed 41 points weaker on the back of profit booking at higher levels. This is a truncated week since there will only be the Muhurat Trading on Thursday for one hour and Friday is a trading holiday. Hence some amount of caution is warranted and like on trading positions.

On Tuesday, the advance decline ratio or the A/D ratio stood at 20:30. The good news was the VIX has been trending lower to closer to the 17 levels, which is a good sign that the risk is tapering in the markets. On Tuesday, the metal stocks did show signs of pressure over demand and input cost concerns.

Foreign investors were net buyers of Rs.245 crore while DFI investments were flat on Tuesday. That is some respite from FPI selling. On Tuesday, the Dow and NASDAQ were up around 35 bps while Europe was mixed. Nifty has opened strong on Wednesday but the pressure of a long weekend is likely to restrain trading positions.

Overall, there is likely to be caution and selling at higher levels on Wednesday although the Muhurat Trading would be largely flat to uneventful. Traders should wait for the outcome of the Fed statement before committing to positions.

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