InvestorQ : What is your quick analysis on the stock markets for the 09th of September 2022?
swati Bakhda made post

What is your quick analysis on the stock markets for the 09th of September 2022?

diksha shah answered.
4 weeks ago

Nifty gained nearly 175 points on Thursday and the support came from sectors like cement, oil and banking stocks. In fact private and PSU banks were among the major gainers on Thursday with banks like ICICI Bank and Axis Bank being among the major drivers of the Nifty rally on the 08th of September.

In terms of the market internals, the advance decline ratio or the A/D ratio of the Nifty stocks was positive at 33:16. It almost looked like the markets carried forwards the cues of the global markets. The big data flows on the macro front will be put out in the coming week wherein the inflation and IIP data are likely to be put out by the government.

Foreign investors net bought equities to the tune of Rs.2,913 crore even as domestic funds and LIC sold stocks worth Rs.213 crore on Thursday. The FPI flows may not be exactly reflective of intense buying since it was largely accounted for by FPIs buying into Indigo block sale. Gangwal had sold 2.9% equity of Indigo from his promoter stake.

On Thursday, the global markets were broadly in the positive as it reconcile to another 75 bps rate hike after even ECB hiked rates by 75 bps. Dow was up 193 points and NASDAQ was up 70 points. Europe was flat to positive while SGX Nifty trades almost 88 points higher in early trades on Friday. The sharp fall in oil prices is likely to be favourable for India.

In terms of sentiments, lower oil prices will continue to favour the Indian markets although there could be some element of caution on account of the weekend coming up. Overall, the market bias is likely to favour the PSU stocks with focus on banks and defence. Most of the short term traction is likely to happen there. Short term strategies can be built around that.