InvestorQ : What is your trading view for Monday 10th May in the stock markets?
Lavanya Subramanian made post

What is your trading view for Monday 10th May in the stock markets?

diksha shah answered.
2 years ago

The last 3 days of the previous week were strong with the rally being triggered by the RBI COVID package announced by the governor during the previous week. It has raised hopes of a possible fiscal stimulus package which will complement the COVID waivers. This has led to a lot of buying interest in pharma stocks in the last few days.

The big trigger will also be the quarterly results. In the latest quarter, the performance overall has been quite appreciable but it is clearly metal stocks that have taken the cake. However, some sectors like cement and consumer goods felt the pressure of higher input prices. The PSU banking results are yet to start and that needs to be watched closely.

Foreign portfolio investor action was back to negative on Friday after a short break on Thursday. There was net FPI selling of Rs.1,143 crore while the domestic institutions bought Rs.1,468 crore of equities. Like the month of April, even in May the FPIs have remained sellers as the rapid spread of COVID has created a major event risk for them.

On Friday, the American markets were broadly positive with the Dow up 67 bps and the NASDAQ up 88 bps. The European markets were also buoyant with the DAX up nearly 135 bps on Friday. In early trades, the SGX Nifty, which is the Nifty trading offshore in Singapore, was quoting nearly 75 basis points higher