Fact.
1.
As
we discussed in the previous day's premarket report, the market was trading as
per expectation until 3.00 PM, when there was a huge intentional selling by
some institutional players. I am sure of institutional selling because If there
was something wrong in India or other global markets, all markets must be
affected. Opposite to India, the US market and other market was good.
2.
Also,
if we look at the Nifty Future open interest, despite such a huge fall there
was no addition of future contract, there was an unwinding of contract. This proves
that the fall was unexpected and irrational.
3.
After
the closing of our market, the crude oil price also fell about -5 % which is
supportive of the stock market.
4. In the USA, two main economic data
were released and both were better than expected. These data are - U.S. API
Weekly Crude Stock, U.S. Building Permits. And that’s the reason US Market shot up.
5.
The
International Monetary Fund (IMF) has cut its growth forecast for India for
FY23 by 80 basis points to 8.2 percent. It could be one reason for panic
selling too.
6.
Yesterday,
FII again sold around Rs 6000 Cr.
7.
Yesterday,
the ADR in the US markets was also mostly in green which is a good indication of
some recovery in our market.
8.
Currently,
the SGX nifty is an indication about 60 -70 points higher than the previous day's
close.
Conclusion
After
observing all these things, it seems that today's market must recover from the lower
level of 16800. If the 16800 level is broken, we may witness fresh selling. So,
we may expect the market to trade between 16800 to 17270.
Disclaimer: This blog is just for educational
purposes and it represents my view. Don’t Consider it as advice as I am not
SEBI Registered research analyst or advisor. Before taking trade do your
research or consult your financial advisor. I am not responsible for any profit
or loss that arises due to trading or investing.
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