InvestorQ : What is your market view for 19 April? Does the correction in Nifty look to continue?
Arusha Ray made post

What is your market view for 19 April? Does the correction in Nifty look to continue?

Answer
image
diksha shah answered.
3 weeks ago
Follow

In the previous week, we saw all the sectors losing value. The only exception was the pharma space, which gained on COVID demand. It is rather disconcerting that the daily COVID cases have crossed 2.50 lakhs and even recovery rate has fallen sharply. You must be cautious of pressure on banks and rate sensitives will be higher and watch for VIX.

Due to the Ramnavmi holiday on 21 April, the coming week is again going to be a truncated week. However, the action will largely revolve around pharma stocks. You can look to front line pharma stocks as a hedge against volatile markets. Cyclicals in the capital goods and even metal space may come under some pressure, starting Monday.

FPIs were net buyers on Friday to the tune of Rs.438 crore even as domestic institutions also bought Rs.658 crore of stocks. However, the FPIs sold Rs.4,654 crore in equities in the first 2 weeks of April, which will be an overhang. In the last few days, global institutional action has been very limited and that has raised doubts in the market at higher levels.

Last week on Friday, Dow was up 50 bps while NASDAQ was almost flat. European markets like the FTSE, CAC and DAX also closed positive on Friday. However, if you look at the early trades on the SGX Nifty, it is trading more than 1.3% weak in early trades as COVID fears continue to build and there have been a series of growth downgrades of India GDP.

6 Views