InvestorQ : What is your view of the markets on Monday 08th August?
Dia Deshpande made post

What is your view of the markets on Monday 08th August?

diksha shah answered.
2 months ago

In the previous week, the Nifty closed with gains of 1.4%. But more importantly, on most of the days, the markets showed the ability to bounced from lower levels. There is a lot of underlying strength depicted in the market despite the clouded global scenario. On Friday, and on most days of the week, the advance decline ratio stayed consistently in the positive.

On Friday, the cement stocks rallied sharply but metals and autos were under pressure with some pressure on the rate sensitives after the monetary policy. . The rupee closed relatively strong for the day relatively weak at 79.40/$. There are going to be a lot of data flows this week like the US inflation on Tuesday, India CPI inflation, IIP and trade data on Friday.

On Friday, foreign investors net bought equities worth Rs.1,606 crore as domestic funds and LIC sold Rs.496 crore. FIIs infused Rs14,000 crore into equities in first week, but it includes the block buying in Zomato and Macrotech. On Friday, Dow was up 77 points while NASDAQ was down 63 points but Europe was in the red. There is US inflation data causing caution.

The week is likely to be volatile due to a trading holiday on Tuesday and data flows. There is the US inflation data on Tuesday and then India specific data like CPI inflation, IIP growth and trade data on Friday. Trade data may hold the key to the rupee with the trade deficit expected to be well above the $31billion mark for the month of July 2022.