InvestorQ : What is your market view for trading on Wednesday 10 February?
sarah Leo made post

What is your market view for trading on Wednesday 10 February?

diksha shah answered.
2 years ago

After a sharp rally in the past one week, Tuesday was a day when the indices were highly volatile before closing with marginal losses at the end of the day. Auto stocks and metal stocks came in for some correction after the rally but results of Tata Steel and Adani SEZ were very robust for the third quarter. Auto could continue to be a buy on dips story.

Some interesting data has emerged on insurance stocks which were in the limelight on Tuesday after private insurers reported robust growth in new business premiums or NBP in the month of January. This is in stark contrast to LIC reporting a fall in NBP in the month of January 2021. This is likely to be favorable for stocks like SBI Life, ICICI Pru and HDFC Life.

Foreign buying continues to be robust in Feb too. FPIs were net buyers to the tune of Rs.1301 crore on 09 February while DFIs sold a fairly large sum of Rs.1756 crore worth of equities. FPI flows are steadily picking up but the surge in DFI selling could be a worry as it is indicative of pressure for domestic funds. This area needs to be watched.

Tuesday was a day of flat markets across the global markets. Dow and NASDAQ also closed almost flat on Tuesday as did European indices like the FTSE, CAC and the DAX. The SGX Nifty is also flat to positive in early trades and Asian indicators could hold the key. The market could now wait for fresh triggers before the next move.