Trekking through the markets
Reliance and IT lead Nifty higher, in a lackluster week due to margin changes
The benchmark indices ended the week with over 1% gains in a week that witnessed significant fall in market activity. Volumes were much lower as compared to past couple of month average. Commodities (due to global correction in commodity prices) and financials (indeicison over interest for moratorium period) were worst performers. Market breadth was poor.
Bonds sold off again despite RBI effort to talk yields lower. INR also ended little weak.
Global markets mixed, US underperforms
The global markets were mixed last week. USA and China Equities underperformed, while emerging markets, Europe and Japan did well. Volatility eased further. USD and Bonds gained, while industrial commodities, crude and silver ended the week with decent losses.
Outlook for the week
The outlook and trend for Indian equities remains unchanged from the previous week. The outlook and trend now is neutral for near (daily), short (weekly) and midterm (monthly), implying balanced risk reward for traders. The near term momentum has slowed marginally, indicating slightly lower probability for change in the market outlook and trend. For this week-
· The day traders may avoid trading in 11327-11513 nifty range. The long positions may be held with a stop loss of 11142. Outstanding short positions may be held only with a strict stop loss of 11642.
· Bank Nifty is now in neutral zone. Fresh long must be avoided. All short position may be held with a stop loss of 22695. Day Trading may be avoided in 22010-22670 range. For all long position maintain a strict stop loss of 22040. A close below 21915 anytime in next two weeks could trigger a midterm (9-15 months) down move in Bank Nifty.
Market trend and outlook
Indian markets last week
Global market performance last week