Trekking through the markets
Indian equities shrugged off global trend as FPI buying propelled markets higher
Indian equities outperformed their global peers and recorded decent gains. The momentum was good and level of activity higher. FPIs remained large buyers, while DII continue to remain on sell side. Market breadth improved materially as mid and small cap stocks outperformed the benchmark. Realty and Banks were the top performing sectors; while the defensive FMCG, IT and pharma sectors underperformed. Volatility remained at elevated level. INR weakened marginally while bond yields continued to ease.
Global market remain in risk off mood
US politics, dithering over stimulus and pandemic fears in Europe made sure that the global markets remain in risk off mood. Equities were weak generally, USD strengthened, precious metals gained, while crude and bonds sold off. Volatility remained at elevated level. EUR gained over 1%. India was a noticeable outperformer.
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 24885. Day Trading may be avoided in 23975-24336 range. For all long position maintain a strict stop loss of 24145.
Market trend and outlook
Indian markets last week
Global market performance last week