InvestorQ : What is your stock market view for Tuesday 04th October 2022?
Arusha Ray made post

What is your stock market view for Tuesday 04th October 2022?

diksha shah answered.
2 months ago

It was a weak market performance on Monday after a moderate to flat start. The Nifty tried to open strong but failed to hold on to higher levels. At the close on Monday, the Nifty ended nearly 207 points lower at 16,887.35. The 17,000 level of the Nifty continues to be a strong resistance and could prove decisive in its future moves.

In terms of market structure, the breadth of the market as measured by the advance decline ratio or the A/D ratio was largely unfavourable at 8:42. In fact, even the intermittent bounces were not too convincing and were met with selling. Apart from the Adani group shares, even the auto stocks and consumer stocks came under a lot of pressure on Monday.

Foreign investors were net buyers in equities to the tune of Rs.591 crore even as the domestic funds and LIC sold stocks worth Rs.423 crore on Monday. The numbers were hardly conclusive but it is good to see FPIs start off on a positive note in October after the rather disappointing show in September when FPIs sold $2.3 billion in last 8 sessions.

In terms of global markets on Monday, the Dow surged by 765 points while the tech laden NASDAQ was up 240 points as markets adapted to the new rate regime. The SGX Nifty is sharply higher by 248 points in early trades and hints at a very strong opening for the markets. The sharp rally in the Nikkei, Japan should also help sentiments.

The global markets have rallied on Monday and that is likely to rub off on Indian markets on Tuesday, as is evident from the SGX Nifty cues. However, there are still some major concerns for India. For instance, the supply cut in crude by OPEC is likely to push the rupee to beyond 82/$ which could eventually trigger more FPI selling. The short term outlook does look bleak for the markets and a lot would depend on whether the Nifty can really sustain above the 17,000 levels decisively with the support of volumes.