InvestorQ : What is your view on the stock market trading for 22nd October? Do you see weekend profit booking on Friday?
Debbie Mascarenhas made post

What is your view on the stock market trading for 22nd October? Do you see weekend profit booking on Friday?

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diksha shah answered.
2 months ago
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On Thursday the stocks corrected sharply for the third day in succession, although there was some recovery in the last hour of trade. The Nifty actually got pretty close to the 18,050 mark before taking support at that range closing higher. The pressure was most visible across consumer oriented companies, especially the FMCG stocks, on cost concerns.

If it was Hindustan Unilever earlier, this time around Asian Paints dampened the sentiments in the market with its 28% fall in profits. This was on the back of surge in crude and other input costs. This has been visible trend across FMCG and consumer companies, where input costs have gone up sharply, thanks to crude prices. RIL is the big result today.

Foreign investors were net sellers on Thursday of Rs.2,819 crore while local funds bought stocks worth Rs.428 crore. FII selling is getting disconcerting by the day. Global cues were not too decisive. Dow closed flat and the NASDAQ closed 62 bps higher. Europe stayed in the negative through the day while SGX Nifty is positive but that does not really matter.

We could see selling slowing down on Friday, as the Nifty lost nearly 400 points point to point in the last 3 days. It looks for now like the Nifty is taking support around the range of 18,000 to 18,050. While costs are a concern for inputs, profits are not likely to be impacted too much for other sectors. Banking may really hold the key to numbers.

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