InvestorQ : What is your trading view for Monday, 20th September? Do you see the market correction getting deeper?
Anamika Sodhani made post

What is your trading view for Monday, 20th September? Do you see the market correction getting deeper?

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diksha shah answered.
3 months ago
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On Friday, Indian markets got jittery in line with Asian and European markets. The first big reason was the upcoming FOMC meeting on 21st and 22nd of September. It is expected that this meeting could actually set the tone for tapering of liquidity, which is always a risk factor for flows dependent market like India. There are also concerns over Powell stepping down.

The other big worry in markets is the likely collapse of Evergrande of China, which is under a pile of $305 billion of debt. The collapse, if it happens, could have an effect similar to Lehman in Asia. If the China currency weakens, the worry is that the rupee too may have to drop value. That is likely to override the reforms announced last week.

Foreign investors bought Rs.1,553 crore of equities on 17th September while DFIs sold equities of Rs.1,399 crore. FPIs have infused Rs.6,700 crore in the week. Meanwhile global markets reacted negatively to concerns over FOMC meet and Evergrande. Dow and NASDAQ were down 80-100 bps, Europe was 100 bps lower and SGX Nifty is down 75 bps.

The week is likely to be slightly volatile for Indian markets with a downward bias. The Nifty is already hinting at a lower start in early trades and any bounce would predicate on the how the Dow Futures trade today. The rupee is also likely to be under pressure and that could force FPIs to get a tad wary during the week.

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