InvestorQ : What is your stock market view for the last day of the week, the 14th of October 2022?
Dilmini Mercia made post

What is your stock market view for the last day of the week, the 14th of October 2022?

diksha shah answered.
2 months ago

On Thursday, the penultimate day of the week, the Nifty lost 109 points as the index settled at 17,014 levels. For now, the 17,000 levels of the Nifty remains the key pivot level of the last few weeks. After the higher inflation number in India, there were key concerns in the Indian markets ahead of US inflation numbers and that kept the markets tepid.

In terms of the market structure, the advance decline ration indicating the breadth of market; the A/D ratio at 12:36, remained unfavourable. The stock movements were largely data driven, so while HCL Tech was the top gainer in the Nifty, Wipro was the top loser. While both are IT stocks, the gap was due to rather divergent results.

Foreign investors have been net sellers for quite some time now in October also and even on Thursday then net sold in equities to the tune of Rs.1,636 crore. On the other hand, domestic funds and LIC bought stocks worth Rs.753 crore on Thursday. FPIs are firmly into selling zone in October as broader concerns over hawkish Fed stance and EM worries stay.

The global markets bounced sharply on Thursday after the Fed hinted that it may go slower on rate hikes if growth became a concern. The Dow rallied 828 points and NASDAQ gained 232 points as the global markets bounced sharply. Europe was strong, gaining over 1%, and the SGX Nifty is up nearly 300 points in early trades, reacting to the US market bounce.

Friday could be a decisive day for the Indian markets when the 17,000 levels could be decisively taken out on the upside in this round, if all goes well. Markets have shown a lot of resilience, but today we could see buying combine with short covering taking the markets sharply higher. The rally on Friday, combined with bouts of short covering, could end up being much bigger than originally anticipated if there are not macro disruptions in between.