InvestorQ : What is your stock market view for 03 September? Do you expect Friday selling in the market?
indhumathi Sayani made post

What is your stock market view for 03 September? Do you expect Friday selling in the market?

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diksha shah answered.
3 months ago
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After the massive rally in the last few days, there was another rally on Thursday. We had pointed that 17,200 will be the major resistance for the market and the Nifty has now closed above that level. If it can give a Friday closing above that then the Nifty is almost certainly headed higher. One thing I would suggest you watch is for sector rotation.

A classic sector rotation trend in the last few days has been the shift to less cyclical stocks. Hence you would get to see a surge in IT, pharma, FMCG and insurance stocks. In the previous month, a stock like Hindustan Unilever was up 15%, and you don’t get to see that often. Traders appear to be stepping back from banks and metals for the time being.

Foreign investors were net buyers of Rs.349 crore on Thursday while domestic institutions bought Rs.382 crore. FPI sentiments appear to be changing in terms of Indian equities. In terms of global markets, the Dow and the NASDAQ were higher by about 30 bps as was Europe. While SGX Nifty is up 15-20 bps in early trades, we have to wait for the day.

As you rightly asked, Friday selling has become a common phenomenon these days. Especially, considering that the Nifty and Sensex are at all time high levels. Hence you need to be cautious about keeping close stop losses and churning capital more frequently. I see a phase of flat Nifty but mid-caps and small caps catch up with the rest of the market.

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