InvestorQ : What is your stock market view for 27 May? How much longer you see this rally continuing?
Archita Jajjoo made post

What is your stock market view for 27 May? How much longer you see this rally continuing?

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diksha shah answered.
4 weeks ago
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The Sensex and Nifty began Wednesday on a strong note but interestingly they never gave up gains and the Nifty closed above 15,100 mark while Sensex closed above 51,000. Both indices are still below their peaks, but the markets are celebrating the scaling of $3 trillion market and the fact that stimulus could come sooner rather than later in India.

Once again, A/D ratio was extremely favourable at 31:18 levels even as it was 38:11 on a flat day like Tuesday. You must be a tad cautious about metal stocks after the recent CSFB downgrade. Already steel stocks are among the big losers in the market. Even FPI action has been quite tepid, buying just about Rs.242 crore even as MFs are sellers.

Global cues are not too decisive for Thursday. Dow closed flat on Wednesday and the NASDAQ was up around 60 bps, which is like the techs getting back into action. Europe was mixed despite the ECB liquidity assurance. SGX Nifty is 30 bps positive in early trades but we have an F&O expiry on 27 May and that could hold the secret to the market.

The rally looks to sustain and most brokerages are now upgrading the Nifty target to closer to 17,000 by end of 2021. But the real story could be a fall in commodity prices, benefits to the commodity user industries and a big focus on alpha in mid-cap and small cap stocks. One theme is to go easy on metals and commodities now.

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