InvestorQ : How the Indian Markets will perform in the coming week looking into an increase in COVID-19 cases worldwide?
Priyanka N made post

How the Indian Markets will perform in the coming week looking into an increase in COVID-19 cases worldwide?

Answer
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3 months ago


Indian market ended the week with marginal losses after a very volatile week of trading. Global sell-off, rising number of COVID-19 cases; speculation about lockdown extension; worries about a prolonged economic slowdown, etc worried the investors.

Global commodities (metal & energy), PSU Banks were the worst performers for the week. Realty and midcap were top performers. Market breadth was positive and volatility was a little higher. The level of market activity was very high. INR weakened marginally; yields were lower.

The global markets were badly spooked by the extra cautious commentary of the US Fed Chairman, who expressed concerns over the state of the US economy and the long road to recovery. However, by the end of the week, some recovery was seen in equity prices. For the week, equities ended sharply down, bonds & precious metals were higher. Crude lost materially on the economic outlook. Volatility jumped up sharply.

The near and short term outlook and trend for Indian equities have deteriorated marginally last week, however, it remains unchanged. The daily and weekly trends continue to be positive while the monthly trend remains neutral. The momentum has increased materially 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 9850-10017 nifty range. A long trade may be initiated only if Nifty sustains above 10116 levels for at least one hour. A strict stop loss of 10017 may be maintained for all such long trade initiated. All short positions must be held with a strict stop loss of 10142 on a closing basis.

·For Bank nifty, long positions may be initiated above 20970 levels with a strict stop loss of 20640. All short positions must be held with a strict stop loss of 20970 on a closing basis.