InvestorQ : What is your stock market view for Tuesday, 19th July 2022? Do you expect the rally to continue?
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What is your stock market view for Tuesday, 19th July 2022? Do you expect the rally to continue?

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diksha shah answered.
4 weeks ago
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It was a positive start on Monday as the Nifty closed at 16,279 mark, with solid gains of 229 points. Even the breadth of the market as indicated by the A/D ratio was favourable at 41:9. However, the Indian rupee weakened tantalizingly close to 80/$ and despite the RBI intervention it closed Monday at 79.98/$. The big watch factor will be the rupee today.

In terms of sectoral preferences on Monday, it was all about a strong rally in IT and metal stocks, followed by the banks. Major gainers on Monday were Hindalco, IndusInd and Infosys while Reddy Labs, Britannia and HDFC Bank were among the major losers. IT showed a bounce after a week of pounding even as HDFC Bank lagged on Q1FY23 results.

FPIs net bought (yes that is right) Rs.156 crore of equities on Monday even as domestic funds and LIC bought stocks worth Rs.844 crore. July selling overall has been subdued compared to June. Meanwhile Dow fell 216 points and NASDAQ was down 93 points. In early trades on Tuesda, SGX Nifty is down 74 bps and expect a pressured opening.

It may be tough for the rally to sustain with the tepid institutional numbers indicating that it was largely short covering in the markets. The markets are most likely to be jittery ahead of the July FOMC policy towards the end of the month and the RBI monetary policy in August. It is safer to stick to consumer stocks where most of the medium term risks are priced in.

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