InvestorQ : What is your trading view for the stock markets for Tuesday 27 July 2021?
Dhwani Mehta made post

What is your trading view for the stock markets for Tuesday 27 July 2021?

diksha shah answered.
1 year ago

The trend on Monday was that markets stayed uncertain ahead of the FOMC meet, which is likely to announced the detail late on Tuesday. That could continue to be an overhang on Tuesday too as liquidity is the big challenge for Indian markets. The damage to market sentiments was limited and it was just that the market lacked enough triggers.

The sentiment spoiler, in a way, on Monday was Reliance Industries which reacted to the 7% fall in net profits in Jun-21 quarter. Interestingly, this fall in profits was only due to an exceptional gain in the Jun-20 quarter and the company had actually performed exceedingly well in its key verticals. RIL and SBI actually pulled markets lower in second half.

Foreign investors were net sellers worth Rs.2,377 crore on 26 Jul and this trend only appears to be getting accentuated. Apart from the concerns over the FOMC outcome, dollar strength weighed on emerging markets. At the same time, domestic institutions bought Rs.1,551 crore in equities. FPIs have been sustained net sellers in July and offsetting June flows.

Global markets were mixed with the Dow being positive and NASDAQ virtually flat. European markets were flat to negative on Monday. In early trades on Tuesday, the SGX Nifty is about 33 bps higher and the market outcome could again predicate on results. The 16,000 level will continue to be a resistance while 15,700 will be a support for markets.