InvestorQ : What is your stock market view for 01st September with indices at all time highs?
Aashna Tripathi made post

What is your stock market view for 01st September with indices at all time highs?

diksha shah answered.
1 year ago

On Tuesday, the Nifty easily got past the 17,000 mark and also the 17,100 mark. The immediate resistance may come at around the 17,200 levels. For now it is all about the euphoria of the dovish stance of Jackson Hole is leading to market gains. However, we must not forget that the Market Cap to GDP ratio at 122% is at a 13-year high.

The GDP and the core sector numbers were largely along expected lines. While GDP growth came in at 20.1% for the June quarter, the core sector grew by 9.4% for the month of July. The focus shifts to the high frequency data like auto sales numbers for August, GST collections, e-way bills as well as the composite PMI numbers to judge sequential growth.

For a change, there was robust buying from the FPIs with a net infusion of Rs.3,881 crore on the last day of August. That means they would close August with good inflow numbers on the equity front. What was more telling was the Rs.42,000 crore volumes of FPIs, indicating at block deals. Domestic institutions sold equities worth Rs.1,872 crore.

On Tuesday, Dow was marginally negative while NASDAQ was totally flat in trade. European markets were in the negative after EU inflation at 3% hints at likely tightness of monetary policy. SGX Nifty is trading lower in early trades and we could see the rally take a halt. Especially with the huge Buffett ratio, that looks a likely dampener.