InvestorQ : What is your trading view for 19 May Wednesday and do you see the rally continuing?
Crowny Pinto made post

What is your trading view for 19 May Wednesday and do you see the rally continuing?

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diksha shah answered.
1 month ago
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One can almost say that the rally in the Nifty and the Sensex defied all logic. The 1400 point rally in the Sensex in just a span of two days took both the Nifty and the Sensex above their psychological resistance levels. Interestingly, this rally has occurred without any significant institutional buying. However, the markets may not take a breather after the rally.

On Tuesday, the underlying trend favoured heavyweights and there was quite clear short covering on the back of the fall in COVID cases in most places. At least, there is the hope that things are gradually getting under control. As a result a number of high beta names have been attracting interest.

For a change, the foreign investors action was positive on Tuesday with net buying of Rs.618 crore. Of course, this is not too big but even domestic institutions bought Rs.450 crore of equities on Tuesday. Investors are now putting the entire FPI selling of $2.5 billion in April and May against the backdrop of $37 billion inflows in FY21.

Global markets were clearly under pressure with the Dow and the NASDAQ under pressure after Amazon took sharp cuts on talks that it would make a multi-billion dollar bid for Metro Goldwyn Meyers. Dow was in the negative and so was NASDAQ. However, European markets were mixed with sell-side bias. The SGX Nifty is flat to negative in early trades.

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