InvestorQ : What is your trading view for the stock markets on 20 July?
Deepa Salunkhe made post

What is your trading view for the stock markets on 20 July?

diksha shah answered.
1 year ago

We go into trade on 20 July on the back of negative cues from Indian and global markets. On 19 July, the Nifty lost over 170 points and Sensex lost over 580 points due to a combination of global spike in inflation and the resurgence of a third wave of the pandemic, or COVID 3.0 as it is called. This created tremendous selling pressure in the market.

The sharp fall in the Nifty was essentially triggered by a sharp correction in HDFC Bank, which had announced its June quarter results on last Saturday. However, while profits were in line, the street was disappointed with the higher than expected gross NPAs showing the first visible signs of stress on retail loan book. Other banks followed HDFC Bank lower.

It was hardly surprising that the FPIs were selling on Monday with the global cues and the strong dollar. Foreign investors were net sellers of Rs.2,199 crore on 19 Jul while the domestic institutions bought Rs.1,048 crore in the equities market. Till date in the month of July, FPIs have sold close to Rs.7,000 crore in equities, though they are buyers in debt.

Global cues are fairly shaky as trading commences for 20 July on the NSE and the BSE. It was day of virtual carnage in world markets with Dow Jones Index losing 725 points, NASDAQ losing 150 points and major European markets down 2.5%. SGX Nifty is marginally in the negative in early trades on Tuesday, but cuts could sharpen as we go ahead in the day.