InvestorQ : What is your trading view for Monday 31 May being the last day of the month?
Debbie Mascarenhas made post

What is your trading view for Monday 31 May being the last day of the month?

diksha shah answered.
2 years ago

On 28 May, the nifty finally scaled its all-time high to close at 15,436 level. For Monday, there is a lot of data expected. There is the GDP data for fourth quarter and for FY21 coming out in the evening and the core sector numbers for April 2021. Then there is the auto sales data that also comes out on Monday. All these could keep markets tentative on Monday.

Friday trading was dominated by Reliance Industries which rallied 6% after a sharp 60% price upgrade by global brokerage house, Jefferies. The brokerage also hinted that at the current petchem margins, it could facilitate a sale of stake in the Reliance O2C business. The brokerage is more bullish on the O2C than on the Jio Business of Reliance.

There appears to be a turnaround, albeit gradual, happening in FPI action. On Friday there was net FII buying of Rs.914 crore with the domestic institutions buying equities worth Rs.1275 crore. While May continues to be a month of net FII selling, the trend appears to have turned for the better, with selling much lower than Korea or Taiwan.

The Dow and the NASDAQ were flat on Friday but there positive moves in European markets like the CAC, DAX and the FTSE. The SGX nifty is negative in early trades by about 40 bps but we will have to wait and see how the markets react to the GDP data today. Reliance could once again be in focus and markets are not going to give up on momentum easily.