InvestorQ : What is your trading view for Monday 19 July and do you see any risks for the market?
ishika Banerjee made post

What is your trading view for Monday 19 July and do you see any risks for the market?

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diksha shah answered.
5 months ago
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On Friday, the Nifty once again made a couple of attempts to breach the 16,000 levels but the pressure at higher levels forced the markets to close flat. The Nifty closed on Friday around 75 points short of the 16,000 mark. However, the good news is that the low VIX should ensure limited downsides and an eventual breach of 16,000 by Nifty.

The action will again be on the steel stocks this week after news flows about massive demand likely to come from US infrastructure investments and massive investments made by the EU in clean energy. Steel demand is already at unprecedented levels and global supply restraints from China and Russia will only add to the steel price story.

Foreign investors were net sellers of Rs.466 crore on 16Jul, while domestic institutions bought Rs.666 crore in equities. FPIs have been net buyers in debt markets. Friday was a day of losses globally with Dow losing 300 points and NASDAQ losing 116 points. While EU was tepid, SGX Nifty and Dow Futures give indications of weak Indian trade on Monday.

The big news item that spooked global markets is the sharp rise in global inflation as supply chain constraints are struggling to keep up with rising demand. This runaway inflation is likely to lead to higher bond yields and that has spooked markets. That is likely to keep markets in India also under pressure on Monday 19 July.

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