InvestorQ : What is your stock market view for Tuesday 01st November 2022 for the market and specific sectors?
Dilmini Mercia made post

What is your stock market view for Tuesday 01st November 2022 for the market and specific sectors?

Dawn Cherian answered.
4 weeks ago

On Monday, the Nifty gained over 200 points and held on to higher levels, finally closing above the 18,000 mark. For a long time, that level of 18,000 had proved to be a block for the markets and it is being taken out after more than a year. This level was last seen when the market correction started back in October 2021.

On Monday, the rally in the Nifty was led by Ultratech, Eicher and M&M. With core sector showing strong infrastructure push by the government, cement got a boost. Later, L&T joined the rally post results announcement. However, the stock of Reddy Labs and NTPC remained under pressure post the weekend results. The advance decline or the A/D ratio was favourable at 44:6 with sentiments favouring bulls.

Foreign investors were net buyers to the tune of Rs.4,179 crore even as domestic funds and LIC sold stocks worth Rs.1,107 crore on Monday. There was some block buying in the FPI window, with FPIs also showing some very good traction in the IPO markets this month. FPIs, led by Bain Capital, are likely to sell blocks in Axis Bank on Tuesday.

On Monday, the US markets were weak with the Dow down 129 points and NASDAQ falling by over 114 points ahead of the FOMC meet. That still remains the big overhang with 75 bps rate hike almost a certainty. Europe was flat to negative overall while the SGX Nifty is up about 36 points in early trades, but 18,000 could prove to be a critical point for the Nifty.

The overall macros look with the core sector bouncing back sharply while the fiscal deficit is well in control. For the month, the momentum indicators appear to be in the positive. However, the big overhang would be the upcoming Fed meet statement on 02nd Nov and the follow up meet by the RBI, a day after that where policy analysis could be mixed with policy decisions. Both are giving hawkish undertones for the time being and that is not a good feeling. Markets may retract, unless there are signs of rate hikes topping out.