InvestorQ : Nifty corrected quite sharply last week. Will this affect upcoming week's market trends?
Riya Dwivedi made post

Nifty corrected quite sharply last week. Will this affect upcoming week's market trends?

Answer
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6 days ago
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Despite the sharp recovery from the previous week's lows, the outlook and trend for Indian markets remain unchanged. It
continues to remain in a territory where positional short positions may be considered as risk-reward continues to favor
shorts. The momentum also continues to rise; indicating a materially higher probability of a sudden change in the trend.
The short-term (weekly) and midterm (Monthly) trend and outlook for Nifty are firmly negative indicating an adverse risk-reward ratio. The near-term (daily) outlook and trend for Nifty is neutral implying an even risk-reward ratio.
For this week-
• The day traders may avoid trading in 14640-14785 nifty range, as in this range volatility may be high and stop losses on
both sides may get hit. The long positions may be held with a stop loss of 14820.
• For Bank Nifty also short and midterm trends are negative, while near term trend is neutral. Day Trading may be
avoided in the 34670-35100 range. For all long positions maintain a strict stop loss of 35070.
PSU SHINE IN AN OTHERWISE JITTERY MARKET
Indian markets were mostly jittery last week, except PSU stocks (especially smaller PSBs) which rallied hard in the expectation of an aggressive disinvestment program getting initiated soon. The level of activity and market momentum remained high. Pharma, IT, and Auto were notable underperformers. Overall market breadth was poor, even though broader markets outperformed the benchmark indices. Bond yields rose sharply and INR ended the week marginally stronger.
GLOBAL MARKETS TRYING TO FIND DIRECTION
The trend in the global financial market was quite bewildered last week. Equities were mixed with Japanese equities outperforming. Precious metals corrected further while crypto's and copper rallying hard. Bond yields continue to rise across with inflationary expectations. Volatility also inched higher.
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