Trekking through the markets
SC order on AGR stops market rally, outlook weakens
The Supreme Court order on AGR payments by telecom companies created an environment of uncertainty as the analysts got busy in assessing the collateral damage if the order is implemented. Financial, especially PSU, were at the receiving end. The market breadth turned materially negative after 5 weeks of smart rally in broader markets. The level of activity was average; however the institutions were mostly seen sitting on fringes.
IT sector was the best performing sector for the week, whereas PSU Banks, and metals were the worst performers. Auto and Realty were other notable underperformers.
Bonds gained, despite high inflation prints and INR was stable.
Global markets: Risk trade continues as COVID-19 fear ease
The global markets continued with the risk trade as the fears of coronavirus (COVIS-19) fears appeared easing materially. As per the latest reports, the virus has been contained significantly in China. Equities registered small gains. Copper and Crude were notable gainers. USD also strengthened. Bond yields were stable. Volatility eased materially.
Outlook for the week
The outlook for Nifty has become neutral again. The momentum remains strong therefore the chances of changes in the trend are possible during the course of the week. The long positions in Nifty may be held only with a tight stop loss of 11923. Fresh short positions though should be avoided till Nifty closes below 11874 for two consecutive days.
The outlook for Bank Nifty is negative for the week. The long positions may be held in Bank Nifty with a strict stop loss of 30333. The short positions though should be held with a stop loss of 31240.
Market trend and outlook
Indian markets last week
Global markets last week