InvestorQ : Why did the market correct so sharply on Thursday? What is your market trading view for 09 July Friday?
Aditi Sharma made post

Why did the market correct so sharply on Thursday? What is your market trading view for 09 July Friday?

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diksha shah answered.
5 months ago
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On Thursday, the Nifty literally fell vertically led by metals and banking stocks. In fact, the Bank Nifty saw unwinding pressure on weekly expiry of options. While selling was pronounced across the banks and other financials, the big losers in the day were the metal stocks across steel and other metals.

Clearly, the level of 16,000 on the Nifty has once again proved to be a major resistance the way the Nifty has sharply retreated from that level. On 08 July, the Nifty closed at the 15,727 mark. The advance / decline ratio was skewed in favour of declines at 7:43 for Nifty. However, damage to mid-caps and small caps was limited as BSE A/D was still positive.

July appears to be a month of FPI selling with global investors selling equities to the tune of Rs.555 crore on 08 Jul, sustaining the selling momentum. On Thursday, even domestic institutions like insurances and mutual funds sold nearly Rs.949 crore in equities. July has seen some distinct selling pressure coming from the FPIs after $2 billion infusion in June.

Global cues are actually quite weak for Friday. Dow and the NASDAQ were down 75 bps in later trades on Thursday. However, markets across Europe saw a much sharper fall to the tune of nearly 1.5% across the board. The SGX Nifty is absolutely flat with negative bias in early trades on Friday, although we could see a late bounce after the fall on Thursday.

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