Trekking through the markets
Indian equities recovered backed by global sentiments
Despite geo political and economic concerns intensifying, the Indian equities recorded decent gains on the back of global risk on mood. The market breadth continue to remain very strong as small cap were top performers. The momentum increased further with high volumes and trade activity.
Media, PSU Banks, Energy (primarily Reliance) and Realty were top performing sectors for the week. While defensives like Consumptions, Pharma and IT underperformed majorly. INR and Bonds ended the week some losses.
Global markets recovered some of the lost ground, remain jittery
Though global indices managed to close the week with some gains, but most markets were jittery and volatile. Precious metals and safe haven bonds gained. USD was also a bit stronger.
European equities were best performers for the week, while Japan lagged. Crude recorded good gains as demand outlook improved a bit.
Outlook for the week
The near and short term outlook and trend for Indian equities remains unchanged from the last week. The daily and weekly trend continues to be positive while the monthly trend remains neutral. The momentum has increased further indicating decent probability of a dramatic change in outlook and trend in the near term. For this week-
· The day traders may avoid trading in 9950-10142 nifty range. A long trade may be initiated with a strict stop loss of 10078. Any outstanding short positions may be held only with a strict stop loss of 10334.
· For Bank nifty, long positions may be initiated only if it remains above 20875 level; with strict stop loss of 20680. All short position must be held with a strict stop loss of 21620.
Other relevant readings
Market trend and outlook
Indian markets last week
Global market performance last week