InvestorQ : What is your stock market view for Monday 07th November 2022 and do you see the Nifty rally continuing?
Arusha Ray made post

What is your stock market view for Monday 07th November 2022 and do you see the Nifty rally continuing?

diksha shah answered.
3 weeks ago

It has been a strong previous week overall with the Nifty closing decisively above the 18,100 levels on Friday as the weekend selling did not really materialize. The rally was on the back of hopes that the Fed should now go slow on further rate hikes. FPI flows have been positive in November so far with FPIs showing renewed interest in Indian equities.

On Friday, the commodity stocks staged a bounce on hopes that the China trade numbers would be a lot better than what the street was expecting. However. the auto and pharma stocks were under pressure on Friday. IN terms of market breadth, the advance decline ratio or the A/D ratio was favourable at 28:22 and with VIX low at 15.66 levels, the Nifty could have a positive bias or at least a buy-on-dips kind of bias this week.

Foreign investors were net buyers to the tune of Rs.1,436 crore on Friday even as domestic funds and LIC sold stocks worth Rs.549 crore. This has been the consistent trend over the last few days. Interestingly, FPIs infused over Rs15,200 crore into equities in November so far but have been marginal sellers in the debt segment.

Global market cues are extremely strong for Monday morning trading. On Friday, the Dow was up 402 points and NASDAQ was up 133 points showing positive vibes. Europe was up over 2% across the board while SGX Nifty is up about 98 points in early trades on Monday, indicating a positive opening on global cues.

Let me finally come to the market outlook for the week. This is likely to be a data heavy week so the stock markets could be slightly iffy. Additionally, this is also a truncated week due to a trading holiday on Tuesday on account of Guru Nanak Jayanti. There is the US consumer inflation expected in this week and the UK GDP numbers, both critical data points for India. More importantly, India will watch the China trade data for the week, over and above the India IIP numbers coming on Friday. Overall, Nifty is likely to be in the range of 18,000 to 18,400 through the week with data driven bias tilted to the upside.