Market Savera - 07/ 01/ 25
Manage episode 459744803 series 3628935
Daily Morning Commentary
Retail traders overreact to virus fears -markets are set to open modestly higher.
First about the global markets – US markets rose to more than one-week highs, boosted by a rally in semiconductor stocks and a report that suggested the incoming Trump administration could adopt a less aggressive tariff stance than expected.
A rally in the world’s largest tech companies lifted markets at the start of the first full trading week in 2025. Nvidia stock notched a new record closing high.
Asian shares are cheerful after Wall Street rallied for a second day, while the dollar narrowed losses.
Back home, markets experienced a sharp selloff following the country's first reported cases of Human Metapneumovirus (HMPV).
Retail traders panicked and led the exodus, while domestic institutional investors stepped in with fresh investments of ₹5,700 crore, partially offsetting the ₹2,500 crore selling by Foreign Portfolio Investors (FPIs).
The banking sector faced particular pressure after major banks reported disappointing quarterly loan and deposit growth figures.
Foreign investors increased their short positions in banking indices while covering their Nifty shorts.
The Nifty index has fallen below its 200-day exponential moving average (EMA), with immediate support lying in the 23,400-23,200 range—a critical zone for sustaining any potential recovery. The index faces resistance at 23,800.
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