Domestic data that sets mkt’s tone

Financial Planners


Benchmark indices (NSE Nifty at 18,534, BSE Sensex at 62,547) close flat on the shadow of US debt ceiling concerns, monsoon forecasts, strong macroeconomic data and indicators of a week of global economic adjustment rice field. Nifty rose 0.19% from the previous week’s close, while Sensex rose just 0.07%. However, there was a big move in the mid-cap segment, with the Nifty Mid-Cap 100 hitting a record high of 34,006.55. The index rose 1.6% for the week. Stimulated by MSCI’s rebalancing, the FII became an active buyer during May, investing Rs 43.838 billion. It is worth noting that India attracted the largest investment among all emerging markets in May, while FPI was the seller in China.

Listening Post: You’re Not As Good An Investor As You Think You Are

Are those who don’t remember the crash doomed to repeat it? Thanks to the FII, a flurry of acquisition deals, signs of an economic recovery and an epidemic of amnesia, the market is rising and investors are returning to equities. Many investors are behaving as if the initial catastrophe of the coronavirus pandemic, which saw most of the world’s stock markets fall by at least 50%, never happened.

Financial planners report that more clients say 2008 and 2020 weren’t a big deal. Many people are eager to erase their losses from memory and add more stocks to increase their profits.

“For many people, forgetting the loss just makes them feel better.” Think of memory as a carved version of an event carved in stone that is preserved for decades until it fades with age. maybe. In practice, psychologists have shown that memory often works like an etch-a-sketch, where events are tracked but then completely altered or erased. People tend to “naturally distort their memory in order to feel better about themselves.”

For example, people remember voting regularly in national and state elections, even if they haven’t voted in at least six years, and studies show that 71 percent of students who get D grades in high school are more likely to vote later. Shown to remember getting high grades. . One of the things some investors might feel better about themselves is he remembering that losses were smaller or gains were bigger than they actually are. It’s exactly the kind of polish that seems to be happening in many investors’ minds right now. Memory covers up mistakes.

F&O

Amid heightened end-week volatility, NSE Nifty closed above the 18,500 level while Bank Nifty closed near the 44,000 level, with the market ending the week close to the unchanged line. rice field. The options data show the maximum call position at 19,500 strikes, followed by 18,600 and 18,500 strikes.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *