Trekking through the markets
Major indices Markets tracked global trend, broader markets outperformed
Indian markets were volatile due to rise and fall in expectations from the government stimulus package. However, broadly, they tracked the global trend and ended with moderate losses. The FPI selling was mostly focused at the top end. The broader markets outperformed significantly with midcap index ended the week with decent gains. Auto & Metal sectors were the top outperformers; while private banks were the worst losers. Pharma also corrected some of its gains. Momentum slowed down materially.
INR and Bonds weakened marginally.
Global risk off intensifies further as economic concerns grow
The global markets witnessed a significant strengthening of the risk off mood, as economic concerns grew further across the world. The equities sold off, volatility increased, USD, precious metals and crude gained. Copper was a major loser. Bonds also rallied. US-German bond yield spread is now at multi year low.
Outlook for the week
The outlook and trend for Nifty is mostly unchanged from the last week. The only change is that the momentum has further slowed down, making the weekly trend and outlook also neutral with marginally adverse risk reward.
· The day traders may avoid trading in 8974-9274 Nifty range on closing basis. Below 8974, the traders may adopt sell first strategy.
· The long Nifty position must be held with a strict stop loss of 8822 on closing basis. For short positions, stop loss would be 9345. For Bank nIfty, stop losses would be 18680 and 19360 respectively.
Other relevant readings
Market trend and outlook
Indian markets last week
Global markets last week