InvestorQ : What is your market view for the stock market trading on 02 July?
Khushi Patel made post

What is your market view for the stock market trading on 02 July?

diksha shah answered.
1 year ago

It does look like the level of 16,000 is proving a hard level to break for the markets considering the amount of trader scepticism at higher levels. However, the action has surely shifted to the mid-caps and small caps, as is also evident from the June performance. Nifty has struggled to decisively break 15,900 for almost 40 days now in the absence of triggers.

There were more concerns on the manufacturing front for the month of June. The PMI number or the Purchase Manager Index, showed signs of strain dipping into negative territory for first time in 11 months. At 48.1, the PMI Manufacturing for June was below 50 and clearly hinting at contraction, largely on account of COVID 2.0 effect.

Foreign investors were net sellers of Rs.1,245 crore on 01 Jul, so the new month has started off on a sour note. However, domestic institutions infused Rs.881 crore into equities on 01 July. Friday being the last trading day of the week, you can easily look forward to some amount of weekend unwinding pressure in the second half of the day.

Global markets were a mixed picture. While NASDAQ was flat on Thursday, Dow showed strength led by energy and other oil stocks. European markets were also pretty strong gaining more than 100 bps in trade. However, the Indian markets, as represented by the SGX Nifty, continues to be tepid in the absence of fresh triggers.