Global risk off ended the record winning streak of Indian equities
Global risk off sentiment; reported ETF selling by some large institutional investors; and GST compensation stalemate ended the record 13 day winning streak of Indian equities. The momentum slowed marginally; though it continues to remain high. The market breadth was poor, volatility little higher, and volumes were average. Quality and Midcap were worst performing indices. Metal was the only sector to end the week with gains. Media, PSU banks were again worst performers. INR weakened marginally while bonds were unchanged.
The second wave in Europe makes market fearful
Fresh restrictions on mobility in Europe due to sharp rise in number of cases spooked the traders and made markets bit fearful. Equities, crude, copper, precious metals were sold, while USD and safe haven bonds gained. Volatility increased a little bit. Chinese equities outperformed on strong economic data.
Outlook for the week
The outlook and trend for Nifty remains unchanged from last week. The outlook and trend is positive for near (daily) and short (weekly) term, while for midterm (monthly) it continues to remain neutral. The momentum remains high, indicating good probability for change in the market outlook and trend. For this week-
· The day traders may avoid trading in 11738-11896 nifty range. The long positions may be held with a stop loss of 11416. Outstanding short positions may be held only with a stop loss of 12032.
· Bank Nifty outlook and trend also remains unchanged from last week. The near and short term trend is now neutral while Long term trend continues to remain negative. All short position may be held with a stop loss of 24060. Day Trading may be avoided in 23075-23650 range. For all long position maintain a strict stop loss of 22890.
Market trend and outlook
Indian markets last week
Global market performance last week