InvestorQ : What is your trading view for Thursday 06 May? Do you recommend to stay out of the market for now?
Dia Deshpande made post

What is your trading view for Thursday 06 May? Do you recommend to stay out of the market for now?

Answer
image
diksha shah answered.
1 month ago
Follow

The story on Wednesday was all about the special stimulus announced by the RBI governor to boost the economy. In the aftermath of the stimulus, the Nifty gained 121 points on Wednesday as the liquidity available to COVID projects benefited pharma companies, banks and MFIs in a big way. These were the big gainers on Wednesday.

For the banks, there are again concerns that the introduction of the fresh moratorium may be credit negative for the banks. However, this is a risk that the RBI will have to take at this point of time. The question is whether this will be followed up with a fiscal boost, which could be the real big story for the markets.

FPI action was once again negative on Wednesday with overall net selling of Rs.1,111 crore. Surprisingly, the normally bullish domestic institutions also sold Rs.241 crore of equities. In the last 4 trading sessions since the last trading day of April, the foreign investors have taken out Rs.8,700 crore from equity markets, which is not an encouraging signal.

The tech-laden NASDAQ index in the US was a tad week on Wednesday but there was optimism in most of the other markets. The Dow was in the positive, albeit marginally. Even most of the European markets ended with deeper gains. SGX Nifty continues to be tentative and the VIX staying above 22 and rising COVID cases are clearly not too comforting.

As a trader, it is possibly best to stay out of short term trading. But if you have waiting power it is the right time to take delivery in mid cap stocks in select stocks like pharma, sugar, specialty chemicals etc.


3 Views