InvestorQ : What is your trading view specifically for Monday the 17 May?
Mitali Bhutta made post

What is your trading view specifically for Monday the 17 May?

diksha shah answered.
2 years ago

After giving hopes on Thursday, the Nifty took deep cuts on Friday closing below the 14,700 mark owing to pressure on cyclicals. Even the investor bias shifted towards defensive sectors like IT, pharma and FMCG. The markets will look to big results during the week like Bharti, Hindalco, Colgate and that could set the trend with most macro data out of the way.

Even though the 15,000 level on the Nifty once again proved to be the resistance for markets, the good news is that the VIX continues to be very subdued around 20 levels. That at least implies that major downsides are ruled out for now. The falling COVID numbers are good news but investors will look to pace of vaccinations.

FPIs not only sold on Friday but also deepened their selling. In fact, on Friday, FPIs sold Rs.2608 crore in equities even as domestic institutions managed to infuse Rs.613 crore into the equity markets. In the first two weeks of May, total FPI selling was 70% of the full month selling in April, which gives you an idea how intense the selling has been in May.

Fortunately, the global cues are positive as Friday was a day of sharp gains in global markets. While the Dow gained over 1.3%, the tech-laden NASDAQ gained 2.3%. Markets across Europe showed a 1.5% bounce on Friday. SGX Nifty is up by nearly 60 basis points in early trades and Asian cues and Dow Futures cues could hold the key.