InvestorQ : What is your view for Tuesday 27th September, especially after the sharp fall in the market in the last four days?
Arusha Ray made post

What is your view for Tuesday 27th September, especially after the sharp fall in the market in the last four days?

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diksha shah answered.
2 months ago
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On Monday, the first day of the week, the Nifty closed 311 points lower and the fall was as sharp as it was on Friday, with most of the pressure coming from PSUs and metal counters. The defensives did stand up during the day, but now the Sensex has corrected 2.600 points and the Nifty has corrected over 900 points in the last 4 days. That is quite big.

IN terms of the underlying market structure, the breadth of market as indicated by the advance decline ratio or A/D ratio was unfavourable at 9:41. The markets did make an attempt to bounce back around mid-day, but it was met with heavy selling as traders preferred to offload at higher levels and stay light to reduce longs in the market.

Foreign portfolio investors or FPIs were net sellers in equities to the tune of Rs.5,101 crore as domestic funds and LIC bought stocks worth Rs.3,532 crore on Monday. Domestic buying was largely a form of support led buying by the domestic players. If this trend continues, then the FPIs may end the month as net sellers in equities for September 2022.

In global markets, Monday the Dow was down 330 points and NASDAQ was down 65 points with the techs showing some recovery. European markets were flat to negative on Monday but the crisis in the UK pound should weigh on the region. The SGX Nifty is up around 50 points in early trades, but that trend may not sustain. Sell on rises is the key.

Traders can expect some amount of short covering on Tuesday after the Nifty has lost over 900 points in four days. Hopefully, the impact of the Fed rate hike has been absorbed, but the rupee weakening to 81.70/$ is not a very encouraging sign and that is going to result in a lot of imported inflation. Traders must use any bounces in the market to sell out.

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