InvestorQ : What is your trading view for 06 April and do you see the correction in the market continuing?
sarah Leo made post

What is your trading view for 06 April and do you see the correction in the market continuing?

diksha shah answered.
1 year ago

You can call it a Black Monday as market value of close to Rs.215,000 crore was wiped out in no time. The Sensex lost 871 points in a single day but that was a decent closing because at one point the Sensex was down nearly 1300 points. However, the advance decline ratio or the A/D ratio of Sensex was very unfavourable at 5:25.

In terms of specific stocks, it was the financials that took deep cuts ahead of the monetary policy announcement scheduled on Wednesday. There was a sharp fall in stocks like Bajaj Finance, IndusInd Bank and State Bank of India. However, IT stocks held ground with HCL Tech leading the rally. This was largely due to the rising COVID cases in India.

With the MPC meet kicking off on Monday, there was some apprehension in banking and financial stocks as the policy meet began. Not surprisingly, rate sensitives were the worst hit. Even the metal stocks that had supported the markets all through the last few days opted to take a brief break, leaving only tech stocks to do the job.

FPI action was negative on Monday with global investors net selling Rs.932 crore even as domestic institutions bought a very marginal amount of Rs.75 crore of equities. Since the weight downgrade by Chris Wood of Jefferies, global fund managers have consistently raised India’s risk scale due to the resurgence of COVID and concerted lockdowns.

Ironically, the Dow and the NASDAQ were robust on Monday gaining over 1.6% each even as European markets were in the green with gains of around 60 bps. Despite the Nikkei being strong, Indian markets sank on Monday. SGX Nifty is showing a flat trend in early trades on Tuesday but the sense of apprehension makes the market vulnerable.