InvestorQ : What is your view for the stock market action in Tuesday 18th October 2022? Will the rally continue in the market?
Niti Shenoi made post

What is your view for the stock market action in Tuesday 18th October 2022? Will the rally continue in the market?

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diksha shah answered.
1 month ago
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On Monday, despite weak cues from the global markets, the Nifty gained 126 points on and settled at 17,312 levels. However, we are yet to see decisive action around 17,000 levels and a breach with volumes. On the positive side, markets have taken some solace from the MPC members insisting that it was time for RBI to focus on growth.

In terms of market internals, the advance decline ratio or the A/D ratio measured the market breadth at 37:13. Banks and financials had a positive day ahead of key results of banks and expectations that the rate hike cycle may have largely topped out. Metals continued to be under pressure on lower prices and weak China demand concerns.

Foreign portfolio investors or FPIs were net sellers in equities to the tune of Rs.372 crore as domestic funds and LIC purchased stocks worth Rs.1,582 crore on Monday, giving support to the markets at a time when global investors were selling. FPI selling has been gradually abating in the last few days and global cues may hold the key going ahead.

On Monday, global cues were very positive. The Dow surged 551 points and NASDAQ also surged 354 points as markets tried to factor in some sobering of hawkishness by the Fed. Europe gained nearly 2% while, the SGX Nifty is trading 135 points higher in early trades on Tuesday. It remains to be seen if this positive sentiments can really be sustained.

For Tuesday trade, you can expect the markets to have a strong opening in line with global cues and the early indications of the SGX Nifty. However, it remains to be seen if the Nifty can really sustain above the testing range of 17,300 to 17,400. That is where the Nifty has struggled in the recent past. Don’t expect too much of moves as markets are likely to remain stable around the Muhurat trading period. However, post that we could see some amount of expectations building up on November meeting of Federal Reserve and rate hikes.

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