What is your trading outlook for stock markets on Monday, 15th Nov 2021? Will the Friday rally sustain?

Friday saw a decisive rebound in the market as the Nifty rebounded by 229 points and Sensex rebounded by 767 points. On Friday, the big story was the positive advance / decline ratio of 43:7. IT and metals were among the gainers while banks continued to remain under pressure. Overall, the trend remained positive and looks likely to sustain.

Another important data point for Monday is the fall in VIX by 7% to 15.22 levels. It has clearly neutralized most of the VIX rise that we have seen in the last few weeks over inflation concerns. That does indicate that downsides to the market may be limited. Of course, the big even this week is the mega listing of Policybazaar and Paytm.

For a change, the foreign investors were net buyers on Friday to the tune of Rs.511 crore in equities while domestic mutual funds and insurances bought stocks worth Rs.851 crore. While the FPI buying is still small, it does provide a relief in the midst of 45 days of persistent selling by the FPIs. However, QIBs have been extremely active in the IPO market.

On Friday, NASDAQ closed 100 bps higher while Dow closed 50 bps higher, choosing to brush off inflation worries. European markets were mixed on Friday while the SGX Nifty is trading 23 bps higher in early trades on Monday. For now, the momentum looks to sustain in the coming week, especially with the VIX at much more manageable levels.