InvestorQ : What is your trading view for the Nifty and Sensex for Monday, 04 October? Why is the market facing so much resistance?
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What is your trading view for the Nifty and Sensex for Monday, 04 October? Why is the market facing so much resistance?

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diksha shah answered.
2 months ago
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The Nifty closed on Friday at 17,532, giving up nearly 400 points from the peak levels of the last few weeks. Sensex also faced resistance above the 60,000 mark and closed below that level. The pressure was coming mainly from the rate sensitive stocks on concerns that RBI may give a hawkish signal in the October policy by hiking reverse repo rates by 15-20 bps.

The good thing in this fall is that the over A/D ratio has not seen much of damage. In fact, despite the sharp fall on Friday, the A/D ratio was almost neutral. Despite the correction in the rate sensitives like financials and auto stocks, the PSU space continued to attract a lot of positive attention from investors. That could be the opportunity to watch out for.

On Friday FPIs bought Rs.131 crore in equities while the domestic fund sold Rs.613 crore in equities. FPI flows into debt have been very robust in the month of September. In global market cues, Dow closed Friday 143 bps higher while NASDAQ was 83 bps up. European markets were weak but SGX Nifty is 51 bps higher in early trades along US trends.

The market may need a good effort to get above 18,000 on the Nifty and 60,000 on the Sensex. The big trigger, beyond all the macros, will be the quarterly results which commence this week with TCS announcing the Sep-21 quarter results on 08-October. If this is another robust quarter like Mar-21, then new highs are a perfect possibility.

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