What is happening in stock market ?

Stock market stock exchange has began to subside lately and is now been trading flat for about hebdomadally now, today 27th July, 2021 Nifty has fallen down 78 points. For the past few weeks FII’s have increased their activity within the stock market as they have now began to tug out their money and has started profit booking.

FII’s are the rationale any domestic share market moves up and down as they’re the foreign investors who believes the expansion potential of companies of any particular country, and for the past month they have pulled an about prodigious amount of money about 14,700 Cr. but on the other hand DII’s have began to extend their activity within the market and is luring in huge sum of money .

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Which sector has been hit most hard ?

Asian markets hit 2021 lows amid selling in Chinese internet giants, and real bond yields of market hit record lows before Federal Reserve System policy meeting was held, said a recent Reuters report.

Although Nifty constituent has made a positive shake the 15,450-15,900 trading range in previous week (the week we are talking about here), there was no continuing high buying support within the market last week and this has forced the Nifty to fall back below 15,900 support again. For the past week every segment of Nifty except the Nifty Metal has been hit hard with this correction. on 27th July,2021 Pharma stocks plumed to their month’s low, as on WTD basis it had been hit by about 4% of correction. Here is that the world wise performance of Nifty subsidiaries.

Shares of Dr Reddy Laboratories‘ hit it’s 10% lower circuit today after reporting a bite off more than one can chew quarterly earnings for Q1 Financial Year 22. Dr. Reddy’s (DRL) (NSE/BSE) shares plunged over 11% in Tuesday’s afternoon deals, dragging down the Nifty Pharma index that fell over 4%. The stock closed 10.4% lower at ₹4,844 per share on the BSE as compared at 5347.75 the day before.

The pharma major of the stock exchange on Tuesday reported a consolidated net income of about ₹570.8 crore for the quarter that ended June 30, 2021 as compared to ₹594.6 crore within the corresponding quarter of the previous financial year. The revenue during this quarter came bent be ₹4,919 crore, up 11% as against ₹4,417.5 crore within the year-ago period. margin of profit was down by 380 basis points (bps) YoY at 52.2% as staple prices have gone up within the last 2 quarters whereas EBITDA margin was down 560 bps.

The pharma major also said that it received a subpoena from American market regulator Securities and Exchange Commission (SEC) for production of documents concerning Commonwealth of Independent States (CIS) geographies.

The matter may result in government enforcement actions against the company in the US and foreign jurisdictions.

On sector wise basis the selling pressure was seen in pharma, energy, private bank, realty and infrastructure stocks while metal and PSU Banks saw buying interest.

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Has market started to move towards correction?

According to many reports from Institutional Investors Stock Market is highly overvalued and So do RBI believes that market is in high risk zone as the economy is facing the greatest depression of century and unemployment is on it’s way to Mount Everest. Inflation is on rise has moved to around 7% in India, banks can also Increase their interest rates which means less income for companies. Everyone thinks market needs correction but this bull run has intimated many new investors to push in and earn handsome profits.

should you wait for the correction or start investing? Is stock market really risky at this time?

With the Federal Reserve meeting scheduled for July 28 and the monthly and there is F&O expiry two days later, it would be advisable to trade on light, volatility was expected to pick up over the next two sessions, There has been a major plunge in the china stock market this week due to major policy changes of the communist party. All these reasons built out to take out on the global markets not only the Indian stock market.

yes, you should keep this in mind that the market needs correction but should not wait for it and time the market as by doing this you will miss out on gains which you can still have to build up your liquid.

Review:

The Nifty formed a bearish candle on the daily scale. “The Nifty has got to hold above 15,750 zones to witness an up move towards 15,900 and 15,962 levels, while on the downside, support exists at 15,700 and 15,600 levels,” said Chandan Taparia, the vice chairman , Analyst-Derivatives, Motilal Oswal Financial Services.