InvestorQ : What is your view for stock markets for Thursday, the 19th May, 2022?
Tisha Malhotra made post

What is your view for stock markets for Thursday, the 19th May, 2022?

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diksha shah answered.
2 months ago
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The Nifty and the Sensex started off on a positive note on Wednesday with the markets enthused by the positive US markets on the previous night. However, the Powell statement at the WSJ Conference on rates going as high as 4% spooked markets. During the day, the Nifty scaled 16,400 levels, but eventually closed slightly in the red on Wednesday.

However, since the correction was a late correction, the breadth of the Nifty as measured by the advance decline ratio was favourable at 29:21. There was save haven buying in FMCG stocks as a slew of major players showed ability to hold the OPMs. Cement stocks also gained on the Adani deal, which has been struck at relatively high EV/tonne.

Foreign investors net sold Rs.1,255 crore of equities on 18th May, even as domestic funds and LIC bought Rs.376 crore of stocks. Post LIC listing, there is some bit of domestic boredom setting in. Globally, Dow fell 1,240 points while NASDAQ fell 588 points on weak retail numbers and high inflation. SGX Nifty early trades with losses of 225 bps.

The trend in the Indian markets on Thursday will be predominantly driven by the sharp fall in the Dow and the NASDAQ. The opening will be weak as is evident from the weak start indicated by SGX Nifty. There is too much hawkishness in global markets and with the US reporting weak retail sales, the pressure will amplify. It remains a sell on rises market.

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