InvestorQ : What is your stock market view for Wednesday 24th August 2022?
Lavanya Subramanian made post

What is your stock market view for Wednesday 24th August 2022?

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diksha shah answered.
2 months ago
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It was a volatile day on the stock markets on Tuesday as the Nifty and the Sensex gyrated wildly during the day. Eventually the Nifty closed the day 87 points higher, on the back of short covering and some trade buying in auto stocks. The bounce in the markets was led by auto stocks like Mahindra & Mahindra and Eicher Motors on auto component numbers.

Jackson Hole remains the big story for the week. But, even as global markets remained jittery over the Fed stance and the Powell Talk ahead of the Jackson Hole symposium, the bounce in the Indian markets was quite surprising. In fact, the turnaround in Indian markets was best reflected by the advance decline ratio or A/D ratio transforming to 42:8 by close.

Foreign investors net bought equities worth Rs.563 crore as domestic funds and LIC sold stocks worth Rs.215 crore on Tuesday. With limited institutional action, most of the stock market traction appears to be coming only from the trading and covering perspective. However, FPIs have infused more than $5.5 billion in equity in August 2022 so far.

In terms of the global cues, the Dow Jones Industrial average closed 154 points lower while NASDAQ closed flat on Tuesday. UK markets fell sharply on 18% inflation and negative growth jitters. Other European markets were flat to negative. SGX Nifty is down 44 bps in early trades as traders play it cautious ahead of the F&O expiry. Things can change sharply.

IN terms of outlook, the Indian markets showed lot of trading strength, support by buy-on-dips due to VIX staying under 20. The Jackson Hole symposium will run from 25th August to 27th August. Powell will outline the official stance of the Fed to the world. Combined with the F&O expiry for August slated for Thursday, there could be volatility pressure on markets.

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