InvestorQ : What is your trading view in the stock market for Thursday, 22 July?
Dia Deshpande made post

What is your trading view in the stock market for Thursday, 22 July?

diksha shah answered.
1 year ago

While markets were shut on Wednesday due to Id celebrations, Tuesday market the third successive day of correction on the Nifty. After cross 16,000 briefly last week, Nifty fell to 15,630 levels giving up more than 400 points from the top scaled last week. The carnage was most visible in banks and metals, led by HDFC Bank and Hindalco.

Apart from the banks, it was the Adani stocks that came under a lot of pressure. However, in the market, the overall VIX is still comfortable at around the 13 levels. This is an indication that the worst case scenario for the Nifty may not be much lower from the current levels. Hence trades can still use dips to accumulate stocks gradually in the market.

There seems to be an escalation in foreign investor selling with net selling to the tune of Rs.2,835 crore on 20 Jul. On Tuesday, the domestic institutions bought Rs.873 crore in the equities market. In just the last 2 days, FPIs sold equities to the tune of Rs.5,000 crore, which is huge and that has taken the monthly figure deeply in the negative.

On Wednesday, the Indian markets were shut on account of trading holiday. However, the US markets and the European markets showed sharp traction with European markets up as much as 1.7%. SGX Nifty is up nearly 50 bps in early trades on Thursday and there could be some following up global spill over on the buying side after some consistent selling.