InvestorQ : What is your trading view for Monday 05 April? Do you see the market bounce sustaining on the Nifty and Sensex?
sara Kunju made post

What is your trading view for Monday 05 April? Do you see the market bounce sustaining on the Nifty and Sensex?

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diksha shah answered.
8 months ago
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You must remember that the Indian markets will reopen on Monday after a gap of 3 trading session and a fairly truncated week. In addition, Chinese and other contiguous markets in Asia are shut on Monday and only Japan and India are the two major functional markets. Hence trading action is likely to be relatively light. While levels may be hard to call, the sharply lower VIX indicates that the markets may be close to a bottom.

The Nifty closed sharply higher on Thursday gaining nearly 1.3% to around the 14,850 levels, still about 150 points short of the psychological 15,000 levels. However, the good news is that the Advance / Decline ratio or the A/D ratio stood at a healthy 41:9. The metal stocks continue to lead the markets higher on hopes of higher domestic demand and better pricing power. That has been the positive story for some time now.

FPI action was marginally positive on Thursday although you cannot really call it concerted buying. There was net buying of Rs.149 crore even as domestic institutions sold Rs.297 crore in equities. You need to be a tad cautious about the recent weight downgrade by Jefferies because Chris Wood is a fairly influential voice in global markets, especially when it comes to India. Also, the rising cases of COVID in India are likely to be short-term dampeners.

Dow closed 50 bps higher on Friday while the NASDAQ was much more robust gaining 175 bps as tech stocks got a boost from the likely infrastructure foray of the government. The big story now is going to be the $2.3 trillion that Biden plans to spend on US infrastructure. European markets also closed strong on Friday despite COVID resurgence. Asian markets, barring Japan, are shut and SGX has been fairly tentative in early trades.

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