InvestorQ : What is your market view for the 21 January and do you see any impact of the Biden swearing in? When you see Sensex touching 50,000 mark?
Crowny Pinto made post

What is your market view for the 21 January and do you see any impact of the Biden swearing in? When you see Sensex touching 50,000 mark?

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diksha shah answered.
3 months ago
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It was a classic bounce on Wednesday. After losing a total of 1050 points between Friday and Monday, the Sensex bounced back with a lot of vigour to recoup 1250 points in the next two days to scale a new high once again. For the time being, the next visible level for the Sensex to breach would be the psychological 50,000 mark.

On Wednesday there was not only short covering but fresh buying too and the buying was almost across the board. Most bulls got some reassurance that the short sellers in the market were panicking and therefore they were covering positions at lower levels? The Biden swearing in on 20 Jan should also be a morale booster to the sentiments.

FPIs were net buyers of Rs.2289 crore on Tuesday 20 January while DFIs sold Rs.865 crore. In a way, it was a return to conviction. After being tentative over the last 3 days, the buying by FPIs appeared to resume and it was a lot more decisive on Wednesday ahead of the US presidential swearing in. The next few days will be critical to the colour of FPI flows.

After the Biden rally, now it is the swearing in rally, which is favouring markets across the board. As Biden took charge, the NASDAQ celebrated with 2% gains. The Dow Jones Industrial Average showed gains of around 85 bps. Even the markets across Europe and Asia were in bullish mode. SGX Nifty is up nearly 40 bps in early trades on Thursday.

Finally, a word of caution on the Biden trade! There appears to be a lot of enthusiasm about the swearing in on hopes that there could be a reversion in China policy and immigration rules could get lenient. You must be cautious here because neither rule is going to change too much in a hurry. It would most likely be status quo so that remains an even risk.

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