InvestorQ : What is your Nifty and Sensex view for Monday 08 March? Do you think the correction is over or is there more to the correction?
Rashi Mehra made post

What is your Nifty and Sensex view for Monday 08 March? Do you think the correction is over or is there more to the correction?

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diksha shah answered.
9 months ago
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During the previous week, despite the rally on a weekly basis, the Nifty closed below the psychological 15,000 levels and Sensed below the 51,000 levels. Both indices had breached above these levels but there was a sharp sell-off on Thursday and Friday. That has been the case in the last 3 weeks and that is why the coming week will be very important.

One thing to remember is that Thursday 11 March is a trading holiday so this will be a truncated week of trading. However, the key will some of the important data point cues like the Fed statement, follow-up action on bond yields, OPEC statement on oil quotas, Inflation data, IIP data, bank business data etc. Even forex reserves data will be crucial.

Foreign portfolio investors showed some signs of lightening positions over global bond yield worries. FPIs were net sellers to the tune of Rs.2014 crore while DFIs sold Rs.1191 crore on Friday. This spike in delivery selling also combined with outflows from debt and that resulted in FPIs withdrawing over Rs.5,150 crore from Indian markets in March first week.

One thing is certain that the US markets were extremely positive on Friday on hopes that the Fed would give some guidance on the likely direction of bond yields. Even though European markets were under pressure, the SGX Nifty is up 110 bps in early trades on hopes that the US optimism would rub off on the Indian markets too.

Overall, the markets are in a state of flux and it is hard to say if the levels can sustain. A lot will depend on the liquidity taps. If the Fed assures that it will manage the bond yields without any monetary tightening, global markets are likely to be enthused. That could be the trigger for Nifty and the Sensex to make the next move up. We have to wait and watch.

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