InvestorQ : What is your stock market outlook for 21st October and do you see the correction continuing?
Dia Deshpande made post

What is your stock market outlook for 21st October and do you see the correction continuing?

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diksha shah answered.
1 month ago
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On Wednesday, the Nifty lost close to 150 points, taking the total loss in the Nifty in the last 2 days to 250 points. This was on the back of worries over the slowdown in China and rising manufacturing input costs for Indian companies. Most quarterly results are giving the same message that sequential profits are under pressure due to spike in cost inflation.

The advance decline ratio further weakened to 11:39 on Wednesday, which his extremely unfavourable and shows the correction broadening. In fact, most metals and other commodity stocks came under pressure on profit booking. VIX or the volatility index or fear index has quietly crept to above 18 mark and that is again a concern for markets.

Foreign investors sold Rs.1,843 crore of equities on Wednesday while the domestic funds sold stocks worth Rs.1,681 crore. The selling has been consistent. In addition, global cues are very tepid with Dow up 44 bps and the NASDAQ closing absolutely flat. European markets were marginally in the green, but China and inflation are the prime concerns.

The volatility in the Nifty and the SGX giving up gains shows that the market has shifted to a sell-on rises market. You have to prepare your strategy accordingly till there is some buying support at lower levels.

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