InvestorQ : What is your trading view for 27th October and do you see the bounce in the market sustaining?
Dia Deshpande made post

What is your trading view for 27th October and do you see the bounce in the market sustaining?

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diksha shah answered.
2 months ago
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The markets last week had fallen for four out of the five days and was weak on Monday too. However, the markets recovered sharply on Monday and rallied sharply on Tuesday. Nifty has decisively taken support around the 18,000 levels and on Tuesday, the Nifty closed at 18,268. Index was largely driven by Tata group stocks like Tata Motors, Tata Steel and Titan.

There were two positive features of the market movement on Tuesday. Firstly, the A/D ratio was decisively positive on Wednesday at 39:11, showing good traction. Secondly, the fear index or the VIX cracked sharply to the 16.75 levels. This basically hints at the market continuing to be a buy on dips market for the time being.

FPI selling continued relentlessly on Tuesday. Foreign investors sold Rs.2,369 crore of equities while domestic funds bought stocks worth Rs.1,385 crore. In global cues, the US markets were flat while Europe showed a lot of positive traction. SGX Nifty is also showing positive cues in early trades on Wednesday.

Overall, the low VIX does indicate that the bounce should sustain for the time being. However, global cues like commodity prices and inflation will be a key factor.

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