Trekking through the markets
Nervous traders booked profit (losses) ahead of key events
The nervous traders and investors chose to take some money off the table ahead of key events of F&O settlement and presentation of Union Budget. The global weakness also rubbed off a little, even though the foreign flows turned positive after couple of weeks. The volumes and volatility were higher. The market breadth turned negative as small cap stocks witnessed some sell off. However, on segment basis, mid and small cap outperformed the benchmark indices.
Realty and media were the top outperformers, while global commodities (energy &, metals) were the worst performers. PSUs continue to disappoint majorly.
INR ended the week with marginal losses while bonds gained.
Global markets: Coronavirus infects the market
The global market sentiments were impacted by the concerns about spread of Corona Virus beyond Chinese shores. Commodities markets were badly hit as the traders were busy in assessing the impact of the deadly virus. The volatility spiked; risk assets like equity were sold off; the safe haven assets like bonds & precious metals gained; and USD gained marginal strength. Chinese equities were the worst performers. Both copper and crude lost over 6%.
Outlook for the week
The trend and outlook for Nifty continues to remain neutral for this week. However since the momentum remains strong, the chances of changes in the trend are possible during the course of the week. The long positions in Nifty may be held with a strict stop loss of 12030 and short positions may be held with a stop loss of 12489. Fresh positions in Nifty may be avoided.
The trend & outlook for Bank Nifty remains negative. The long positions in Bank Nifty may be held with strict stop loss of 31111. The short positions may be held with a stop loss of 31760.
Market trend and outlook
Indian markets last week
Global markets last week