InvestorQ : What is your view on stock trading and the overall markets for Monday 14 June?
indhumathi Sayani made post

What is your view on stock trading and the overall markets for Monday 14 June?

diksha shah answered.
1 year ago

Nifty ended the previous week at a level of 15,800 and a lot of positive momentum favouring most of the sectors. The VIX has dipped sharply to 14 levels and Nifty call writing is gradually inching well above the 16,000 mark. Hence, it looks like a matter of time before the level of 16,000 on the Nifty is taken out, although decisive break will be important.

The IIP data announced on Friday for April 2021 hinted at a slowdown in sequential data. Of course, the official number showed IIP growth at 134.4% but that really does not mean much when you look at the dip. The sum and substance is that the economic GDP situation is re still just around the same levels as it was I April 2019.

FPIs bought Rs.18.6 crore of equities on Friday while domestic institutions bought Rs.666 crore. The MSCI revamp could have a positive impact on the FPI flows during the week. In terms of global cues, the US markets were flat on Friday while Europe was sharply up. However, the SGX Nifty in early trades is showing signs of pressure on Monday.

I think the broad view is that you must continue to use any dips to keep accumulating. It is hard to take a call on the index but 16,000 should get taken out in the current momentum. Stick to established and secular stories in the market like sugar, ethanol, specialty chemicals etc. Avoid mid-sized financials and keep off high debt companies for sure.