InvestorQ : What is your quick take on the stock market movement for Thursday 10th November 2022?
Priyanka N made post

What is your quick take on the stock market movement for Thursday 10th November 2022?

diksha shah answered.
3 weeks ago

On Wednesday, the stock market indices came under pressure in the second half of the trading session. While the selling was not too strong, the Nifty closed below the rather psychological 18,200 mark. The fall in the Nifty in the second half was largely led by metal stocks and specific stocks like Divi’s Labs, which had cracked sharply post the results.

As of now the big data point today is the US inflation which will be announced late today. IT was 6.6% last month and is likely to taper by about 20 bps this month. However, that would mean that the US would be on target for a rate hike. The advance decline ratio at 14:36 was unfavourable even as VIX hovered around 15.9 levels, showing a buy on dips market.

Foreign portfolio investors or FPIs were net buyers to the tune of Rs.387 crore even as domestic funds and LIC sold stocks worth Rs.1,060 crore on Wednesday with the trend continuing of FPIs buying and domestic funds selling. FPIs have infused more than $2 billion and have been net buyers in equities on all days in the month of November 2022.

On Wednesday, the Dow cracked sharply by 647 points and NASDAQ fell 263 points showing inflation worries ahead of the big announcement today by the US Bureau of Labour Statistics. Europe was flat to negative while the SGX Nifty is down about 61 points in early trades on Thursday. Markets are likely to face options weekly expiry pressure too today.

Inflation is likely to fall only marginally but that has the potential to keep the Fed on track for another 50 bps rate hike in December and a few smaller sized rate hikes after that. While energy inflation may have spiked, food and core inflation remain the big challenge for the US Fed. Indian markets are likely to be shaky ahead of US data and the outcome of US mid-term elections. Also, there is need for some caution after the sharp rally and the domestic story would be revealed on Friday when the CPI and IIP data are announced.