What is your view on stock market trading for Friday 06 August? Do you expect this rally to sustain further?
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Adani Power director board have already approved delisting from NSE and BSE without minority share holders approvel is it possible to delist without minorities approval? and the buyback floor price is offered about 33 Rs apiece. My holding in Adani Power four digit numbers of shares with high priced. So how can I get out without loose my money.
Your valuable advice are acceptable
Ramlal Kochukrishnan.
After 3 day so continuous rally, the Nifty did not show any signs of relenting. On Thursday, the Nifty closed a tad short of the 16,300 mark. However, the difference this time around was that the A/D ratio also turned favourable, indicating a broader rally in Nifty. The sentiments appear to have turned sharply in just one week in the markets.
The rally on Thursday was stock specific with results candidates like Escorts and Bharti rallying sharply. However, ahead of the monetary policy, the banks and NBFCs saw a lot of selling pressure during the day as asset stress has been quite elevated. On the positive side, the VIX has remained under check below the 13 levels.
After infusing over Rs.5,000 crore in just 2 days of trading, foreign investors once again turned net sellers on Friday, selling equities worth Rs.720 crore. Meanwhile, the domestic institutions bought Rs.732 crore of equities to almost compensate for that. Next week, there are mega IPOs hitting the market and FPI action could be focused there.
In late trades on Thursday, Dow and the NASDAQ closed decisively in the positive while Europe was mixed with a flattish bias across the key market indices like the FTSE, CAC and the DAX. The representative SGX Nifty is trading in the positive by about 17 bps in early trades on Friday but we could see caution on the last trading day.
Coming to your question on rally sustaining further, there should ideally be a correction as the rally has been too sharp and too rapid in just 4 days. It was a mix of buying and short covering that did the trick. However, next week we could FPIs selling in secondary markets to put money in big IPOs and that would put pressure on the markets.