InvestorQ : What is your stock market view for the 10 March, Wednesday? Do you see profit booking of a trading holiday on Thursday?
Dia Deshpande made post

What is your stock market view for the 10 March, Wednesday? Do you see profit booking of a trading holiday on Thursday?

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diksha shah answered.
9 months ago
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Tuesday was a surprisingly positive day for the markets. The Nifty bounced 142 points on Tuesday to close at 15,100 while the Sensex gained 584 points to close above 51,000. The rally was driven by the financial stocks with private insurers leading the way as higher new business premium or NBP was the big story for the month of Feb-21.

However, the market breadth has not been too encouraging. Despite the sharp rally, the advance / decline ratio or the A/D ratio remained unfavourable at 24:26 on the Nifty. Actually, the reason was that the action was almost limited to financials with metals and oil showing a lot of profit booking pressure. VIX at 22.5 is reasonable, but needs to taper more.

On Tuesday, the FPIs were net buyers to the tune of Rs.2,802 crore while DFIs bought equities worth Rs.1250 crore. After a very tentative start to the month of March, the FPIs showed a lot more assurance on 09 March infusing fresh funds. It needs to be seen if this trend can sustain in the coming days.

The Dow rallied by just about 30 points on Tuesday to close almost flat but the stimulus boosted the NASDAQ by 3.7% even as most of the European markets remained flat to positive. SGX Nifty is up 45 bps in early trades and promises a strong opening on Wednesday. Asian cues are also flat to positive on Wednesday.

Thursday is a trading holiday on account of Maha Shivaratri so there could some bunching of positions ahead of the week end. However, we have seen a lot of speculative positions unwind in the last couple of weeks so the impact of the holiday may not be too much. Markets are more likely to celebrate the US stimulus announcement.

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