What is your market view for Friday 21st January after 3 sharp correction days?

On Thursday 20th January, the Nifty cracked another 181 points and closed the day at 17,757 levels. Once again the concern was over rising yields in the US bonds and spike in oil prices. Nifty has lost a full 550 points in 3 days from its Monday levels and the Friday pressure is likely to show up on the last day of the week today.

Nifty closed Thursday with an A/D ratio of 15:35, which is almost the same as Wednesday. These were strongly biased in favour of the declines. The VIX trended marginally lower to 17.79 levels, but that only shows buying likely at lower levels. Bharti, Grasim and JSW Steel were the major gainers while IT stocks were under pressure as was the Bajaj Twins.

Foreign investors, after a long gap, were heavy net sellers in equities to the tune of Rs.4,680 crore. At the same time, domestic funds and LIC bought stocks worth Rs.769 crore on Thursday. FPIs have been going slow on India for some time and are not giving too much credence to the good results, although the budget could change sentiments.

Dow closed 314 point lower and NASDAQ ended with 186 points losses. The Nifty now looks to be trending closer to the 17,500 levels where there could be possible support. For Friday, most traders will look to go light in the weekend while most of the foreign investors are likely to stay light on fresh buying till the colour of the next budget is known.