What is your outlook for the stock market on 10 November after the sharp rally in the last few days?

You are absolutely correct that the Nifty and the Sensex have already scaled new highs on Monday. Of course, it is largely due to the the Biden effect. In addition, FPI flows have also been robust.

As Indian markets touch record highs, the question if this euphoria can continue? Currently, we are in the midst of short covering which could take markets higher but it is very hard to call exact levels, so best to be prepared.

The good news is that the Quarterly results have been fairly encouraging in this quarter. If you break up the results, there are 2 stories emerging. Most industries have got benefits of lower input costs boosting profits while PSU banks have gained from lower provisioning.

Foreign investors continue to buy like there is no tomorrow. In fact, FPIs were net buyers worth Rs.4548 crore while DFIs sold Rs.3036 crore on Monday. FPIs have bought Rs.17,000 crore of equities in 5 days and they appear to be doing a broad risk-on strategy.

Finally, let us look at global markets and there are bulls everywhere. Dow gained 2.5%, FTSE and DAX gained 4.5% while CAC gained 7.5% in a single day. Our good old SGX Nifty is up 1.3% and at least the opening on Tuesday will surely be positive.