InvestorQ : What is your market view for 23 April being the last day of the trading week?
rhea Babu made post

What is your market view for 23 April being the last day of the trading week?

diksha shah answered.
1 year ago

There was a pleasant surprise for the markets on Thursday as the markets bounced back sharply after a weak start. The SGX gap was filled up and the Nifty and Sensex recovered led essentially by the pharma and metal stocks. Nifty closed with gains of over 100 points and could still face weekend pressure on Friday.

The challenge or the headwind is on the COVID front. Not much has changed in the COVID situation with the total afflictions crossing the 3 lakh mark per day; more than the US and Brazil combined. That remains the immediate risk to markets and unless the government gets a handle on that, markets really cannot go too much higher.

FPI action was once again negative on Thursday with net selling of Rs.910 crore while the domestic institutions bought Rs.850 crore in the equity markets. However, FPI volume churn has been fairly huge. Broadly, it could indicate that the bounce yesterday was led by trades covering shorts even as FPIs largely operated independently of market levels.

Dow and the NASDAQ were lower by 100 bps after Joe Biden threatened to impose 40% capital gains tax in the US. Meanwhile, Europe continued to show signs of strength. In early trades on Friday, the SGX Nifty is lower by 90 bps and hints at a weak trade on Friday. Of course, some weekend caution is likely on Friday.