InvestorQ : Despite geopolitical and economic concerns intensifying, how the Indian equities recorded decent gains?
ananya Sing made post

Despite geopolitical and economic concerns intensifying, how the Indian equities recorded decent gains?

Answer
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3 months ago


Despite geopolitical and economic concerns intensifying, the Indian equities recorded decent gains on the back of global risk-on mood. The market breadth continues to remain very strong as small-cap were top performers. The momentum increased further with high volumes and trade activity. Media, PSU Banks, Energy (primarily Reliance) and Realty were top performing sectors for the week. While defensives like Consumptions, Pharma, and IT underperformed majorly. INR and Bonds ended the week with some losses.

Though global indices managed to close the week with some gains, most markets were jittery and volatile. Precious metals and safe-haven bonds gained. USD was also a bit stronger. European equities were best performers for the week, while Japan lagged. Crude recorded good gains as demand outlook improved a bit.

The near and short term outlook and trend for Indian equities remain unchanged from the last week. The daily and weekly trends continue to be positive while the monthly trend remains neutral. The momentum has increased further indicating a decent probability of a dramatic change in outlook and trend in the near term.

For this week-
The day traders may avoid trading in the 9950-10142 nifty range. A long trade may be initiated with a strict stop loss of 10078 above the 10142 range. Any outstanding short positions may be held only with a strict stop loss of 10334. For Bank nifty, long positions may be initiated only if it remains above 20875 levels; with the strict stop loss of 20680. All short positions must be held with a strict stop loss of 21620. All prices spot.