InvestorQ : How the Indian market will react in the coming week while Nifty is struggling with financials while IT & Pharma lead the markets?
ananya Sing made post

How the Indian market will react in the coming week while Nifty is struggling with financials while IT & Pharma lead the markets?

Answer
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2 months ago


Pharma and IT sectors took a decisive lead in the market as financials took a back seat. Energy heavyweight and private banks though led Nifty down ending the five-week rally. The level of activity was again much above average. Implied volatility remained stable despite the F&O settlement. INR and Bonds ended marginally weak.

Global markets had a mixed week, but the "risk-off" was the dominant sentiment. Chinese equities gained sharply on positive economic data, while European equities slumped after large economies declared a massive decline in 2Q GDP. US equities were mixed. Precious metals and cryptos recorded good gains; USD weakened and bonds gained. Volatility was lower.

The outlook and trend for Indian equities have deteriorated marginally from the previous week. The near term (daily charts) outlook is now neutral; while short term (weekly) trend and the outlook remain positive. The monthly trend remains neutral. The near term momentum is low indicating less probability for a dramatic change in outlook and trend in the near term.

For this week:

The day traders may avoid trading in the 11007-11198 nifty range. Outstanding long positions may be held with a stop loss of 10985. Outstanding short positions may be held only with a strict stop loss of 11365. New shorts may be avoided till Nifty closes firmly below the 10795 levels. A close above 11365 in the next 5 trading sessions will open a small probability of a new NIFTY all-time high in the subsequent 23 weeks. The current up move will reverse only if Nifty closes below the 10795 levels. All price spot

For Bank nifty, the up move has stalled, however, the down move has not got triggered. It is therefore in a no trading zone. Any outstanding short positions must be held with a strict stop loss of 21789. Day Trading may be avoided in the 21533-22210 range. A close below 20730 anytime in the next couple of weeks could trigger a midterm (9-15 months) down move in Bank Nifty. All prices spot.