InvestorQ : What is your stock market view for Tuesday 31st May 2022? What could dent the rally?
Mitali Bhutta made post

What is your stock market view for Tuesday 31st May 2022? What could dent the rally?

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diksha shah answered.
2 months ago
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On Monday the Nifty rallied by 309 points and the Sensex by over 1,000 points. In the last 3 sessions, the Nifty has gained 800 points and the Sensex gained 2,100 points. On Monday, the Nifty rally was led by IT, consumer goods and PSU banks. There were no losing sectors during the day as even the mid cap and small cap indices closed decisively higher.

The big trigger was China easing COVID restrictions in Shanghai. The breadth of the Nifty turned decisively positive at 45:5 on Monday with gainers across IT, financials and auto. On the losing side, Sun Pharma and ONGC were down. VIX fell to 19.98 levels, which is a positive feature. On Tuesday, Q4 GDP and April core sector numbers will be announced.

Foreign investors net bought equities of Rs.502 crore as domestic funds bought Rs.1,525 crore on Monday. This is a welcome relief, but too small to change the Rs2.5 trillion of FPI outflows since October 2021. US markets were shut on Monday but Europe was up. In early trades, China related markets are higher but the SGX Nifty is showing pressure.

The Sensex has rallied over 2,100 points in just about 3 days so some halt to the rally may be on the cards ahead of the GDP numbers. Sentiments could be dampened since the GDP number is expected to be lower than 3% for Q4FY22. Investors can look to bet on tech stocks since technology spending is unlikely to be impacted significantly.

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