What is your stock market view for trading on November 03? Do you expect a bounce back in Reliance Industries after the crash?

On Monday, despite Reliance Industries correcting by 9% on the back of its results, the Nifty closed in the green. This was largely helped by banking stocks like ICICI Bank, IndusInd Bank and HDFC. As of now it is tough to say if RIL could correct further.

If you look at the results announced by the top-10 companies in terms of market capitalization, they have been above average in general. Another important result expected on Tuesday is that of Sun Pharma and that could set the trend for pharma sector.

After a small break of selling, FPIs were net buyers to the tune of Rs.741 crore while DFIs sold Rs.534 crore on 02 November. Overall FPI sentiments continue to be positive considering that they have infused Rs.22,400 crore in the month of October 2020.

With the US markets non-functional on Monday, it was left to the European markets to set the trend; and most of these markets were around 2% higher. That has led to positive sentiments in Asia and the SGX Nifty is also trading in the green; albeit marginally.

Finally, we come to the query on Reliance. Yes the stock has already corrected by 20% from the peak and I think most of the risks are in the price. Remember, the base case sum-of-parts that big investors have already paid is close to $205 billion. Now you get margin of safety. It is perhaps time to look at the stock from a long term investor point of view.