InvestorQ : What is your view on the stock markets for Tuesday 17th May, 2022? Do you suggest a buy on dips strategy?
Lavanya Subramanian made post

What is your view on the stock markets for Tuesday 17th May, 2022? Do you suggest a buy on dips strategy?

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diksha shah answered.
9 months ago
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The Nifty managed to break its losing streak by gaining 60 points on Monday, although the market bounce was far from convincing, especially after the 16% correction from peak levels. In fact, the breadth of the Nifty was certainly positive at 33:16 with auto stocks continuing in favour. However, the damage to smaller stocks has been quite intense. The concern is that VIX continues to be at fairly elevated levels at 24.53, and climbing.

Foreign investors continued to be net sellers in equities offloading as much as Rs.1,789 crore net on Monday. However, the domestic funds and LIC bought stocks worth Rs.1,428 crore as has been the trend in the last few days. The immediate trigger will be the LIC listing on Tuesday. Global markets were mixed on Monday with the NASDAQ continuing to come under pressure. The SGX Nifty is trading positive with gains of 25-30 bps in early trades.

Many of the stocks have shown a sharp bounce on Monday, but there is also the story of deep correction in the mid-caps and small caps. The cautionary story of numbers are also expected. The WPI inflation and the RBI MPC minutes will be out on Tuesday while the Powell testimony will be published late on Tuesday. All these are likely to hint at more hawkishness, not great news for the markets overall.

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