InvestorQ : What is your market view for Friday 16th September and would the weekly closing be strong?
Mitali Bhutta made post

What is your market view for Friday 16th September and would the weekly closing be strong?

diksha shah answered.
3 weeks ago

We could see a week Friday, but here is what happened in the markets on Thursday. The pressure on the markets came from the IT sector and to some extent from the metals sector. IT had been downgraded by JPM and Goldman. Nifty closed the day 126 points lower while the breadth of market A/D ratio was sharply negative at 11:39 for the Nifty stocks.

The one sector that managed to hold out on good business outlook for the next few quarters was the auto sector. Most of the major macro data flows are done for the month, although the big expectations would be the Fed policy on 21st September and the RBI policy later this month. For now, both are giving hawkish indications.

On Thursday, foreign portfolio investors were net sellers in equities to the tune of Rs.1,271 crore while the domestic funds and LIC sold stocks worth Rs.929 crore. FPIs are clearly being wary of India ahead of the Fed policy as another 75 bps rate hike is expected. It is felt that if the Fed pushes for 75 bps then the RBI may also push for a 50 bps hike in September.

On Thursday, the Dow trended lower by 173 points and the NASDAQ was down 167 points as the pressure of a 75 bps likely rate hike is beginning to mount on the markets. European markets were flat to negative while the SGX Nifty is trading 78 points lower in early trades on Friday. Across Asia, the pressure looks to be on due to the hawkish undertones.

The markets could come under selling pressure on Friday due to the upcoming Fed meeting as well as the typical weekend worries. This is likely to make traders cautious. On top of that the IT downgrades will still be an overhang on the markets. If the Fed holds its hawkish stance and the RBI follows suit, then more downsides are likely for the Nifty and Sensex.