InvestorQ : What is your stock market view for 15 July and do you see any risks to the market at these levels of the Nifty?
Dia Deshpande made post

What is your stock market view for 15 July and do you see any risks to the market at these levels of the Nifty?

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diksha shah answered.
5 months ago
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To begin with, the big story on Wednesday was the Infosys guidance at 14-16% revenue growth, which is a lot better than anticipated. However, it must be noted that the market has been betting on IT as a story to play out this uncertain phase in markets. Even as IT looks least vulnerable, markets are expecting serious outperformance from IT.

The one space that is under pressure and could see pressure in the quarterly results is the FMCG space. This is due to a combination of 2 reasons. Most FMCG companies are expected to take a dual hit from higher crude prices and also sales pressures due to the pandemic. That is likely to hit quarterly numbers and price pressure was visible on Wednesday.

FPIs were net sellers of Rs.1,304 crore on 14 Jul while the DFIs bought Rs.1,336 crore in the equities market. The flavour among FPIs now is IPOs. Meanwhile Dow was up but NASDAQ was weak. With flat European markets, the SGX Nifty has opened Thursday weak in early trades. However, the focus would be on technology stocks to drive the markets.

Regarding your question on risk, that is something to contend with at these levels. However, till there is liquidity in the market, the market may sustain higher despite intermittent correction. That is also evident from the latest Powell testimony, which hints that the Fed is no hurry to either tighten liquidity or to hike rates any time soon.

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