InvestorQ : What is your view on markets for 14th September? Is this a good level to buy?
Niti Shenoi made post

What is your view on markets for 14th September? Is this a good level to buy?

diksha shah answered.
2 years ago

On Monday, the markets opened weak but the bounce was quite sharp from lower levels. The Nifty, despite the huge volatility closed almost flat. Coal India and Hindalco rallied on price hike news. For example, Coal India is likely to announced a 11% price hike to cover costs while Hindalco gained after aluminium prices on the LME crossed $3,000 per tonne.

The one stock that came under pressure was Reliance after it postponed the planned launch of its Jio Phone Next with Google by 2 months. This launch will now happen in Diwali instead of the originally scheduled Ganesh Chaturthi launch, due to an acute shortage of microchips in the global market. These chips are an integral part of any smart phone.

FPIs surprisingly bought Rs.1,419 crore of equities on Monday while domestic institutions sold equities of Rs.560 crore. Meanwhile, global cues were positive. NASDAQ closed flat But Dow was up 270 points. Europe closed in the positive while in early trades on Tuesday, the SGX Nifty is trading with about 33 bps of gains.

Coming to the second part of your question, if this is a good level to buy, clearly that would depend on the stocks you choose to buy. This is the time to buy momentum and that is currently favouring commodities and select FMCG stocks. One ideas is not to hold too long and focus on moving profits out quickly at these levels.