InvestorQ : What is your trading view for 26th October and how do you see the bounce back in the Nifty and Sensex on Monday?
Dhwani Mehta made post

What is your trading view for 26th October and how do you see the bounce back in the Nifty and Sensex on Monday?

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diksha shah answered.
2 months ago
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On Monday 25-October, Nifty fell all the way to 17,968, but bounced back sharply to close above the 18,100 mark. This is the second instance in the last few days when the Nifty has taken strong support at the 18,000 levels. This is a sign that that level is a sustainable support level for the market in the interim period.

In the midst of the positive closing on Monday, there were several concerns. Firstly, the A/D ratio or the ratio of advances to declines, was unfavourable at 11:39. The rally in the market was to dependent on the sharp rally in ICICI Bank, which has now pipped HUL to become the fifth most valuable company in India after RIL, TCS, HDFC Bank and Infosys.

Foreign investors net Rs.2,459 crore of equities on Monday 25-Oct even as the domestic funds bought stocks worth Rs.2,390 crore. FPIs have been selling relentlessly in the equity market on fears that Indian equity valuations may be stretched. In global cues, the US markets were up while Europe was flat. SGX is up about 11 bps but that is not too credible.

It looks like now the bounce in the Nifty should continue as there is a degree of conviction in the Nifty holding on to the 18,000 levels. For now that should be the support unless there is some genuine global macro risk that play out.
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