InvestorQ : What is the market outlook and Nifty position for the week starting from 01stDEC2020?
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What is the market outlook and Nifty position for the week starting from 01stDEC2020?

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Tanya Mehta answered.
9 months ago
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MSCI index rebalancing, easing of margin rules for non F&O stocks, and F&O settlement kept Indian equities busy the whole week. November expiry was the best month since April 2020. The level of activity was highest ever last week. Market breadth was very strong as small-cap stocks outperformed massively. PSU Banks, metals, and Realty were other notable outperformers. Consumers and Infra were notable underperformers. INR gained marginally while yields were marginally higher.

Clarity over US election outcome and enhanced hopes of vaccine availability in a couple of months kept the global markets in the risk-on mode, with risk assets gaining across the globe. Equities, copper, and crude all recorded decent gains. USD, Gold, and safe-haven bonds sold off. Volatility also eased materially. Bitcoin also corrected sharply from highs. Japanese equities were the best performers.

The outlook and trend for Indian markets remain unchanged from the previous week. However, the momentum has increased substantially indicating a higher probability of a sudden change in the trend in the coming days. The short-term (weekly) and mid-term (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.

For this week-
· The day traders may avoid trading in the 12537-12815 nifty range. The long positions may be held with a stop loss of 12537.
· For Bank Nifty The near and short-term trends are presently neutral. All short positions may be held with a stop loss of 29988. Day Trading may be avoided in the 28770-29395 range. For all long positions maintain a strict stop loss of 29184.
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