InvestorQ : What is your trading view for Tuesday 30 March, which is the first trading day of the week? How do you see the market moving overall?
Arusha Ray made post

What is your trading view for Tuesday 30 March, which is the first trading day of the week? How do you see the market moving overall?

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diksha shah answered.
4 months ago
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We are getting into a rather truncated week with just 3 days of trading. Monday was a trading holiday and Friday will also be a trading holiday on account of Good Friday. In addition, banking transactions are restricted on 01 April due to year ending. Domestic traders and mutual funds are likely to play it safe ahead of financial year closing.

There was some encouraging news from the Suez Canal that the 400-meter liner that was stuck in the Suez Canal was finally moved and normal trade movement had resumed. However, it would take more than a week to clear the canal traffic and also the standby marine traffic. Overall global trade may remain under pressure for a couple of months.

FPI action was marginally negative on Friday with global investors net selling Rs.-50 crore even as domestic institutions supported the markets with buying to the tune of Rs.1703 crore in equities. FPI numbers were largely insignificant but clearly the domestic funds are trying to hold the markets at better levels to protect NAVs ahead of year closing.

The impact of the clearance of the Suez Canal was relatively mixed on the global equity markets. While the Dow was up 60 bps, NASDAQ ended slightly lower even as Europe and Asian markets were also mixed. SGX Nifty is marginally higher in early trades on Tuesday but the direction would predicate on how the global cues, especially Asian cues, pan out.

One of the key indicators in the last days has been the VIX levels which has been fluctuating quite violently. On Friday, as the Nifty and Sensex rallied sharply from lower levels, there was also a tapering of the VIX close to 20.5 levels. With the Suez Canal cleared, there is going to be a greater degree of enthusiasm in markets, and perhaps lower VIX levels.

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