InvestorQ : What is the outlook and trend for Indian equities for the week starting from 28th September?
Aishwarya Nimbalkar made post

What is the outlook and trend for Indian equities for the week starting from 28th September?

Answer
user profile image
4 weeks ago


The Indian equities suffered major losses as FPIs pressed the sell pedal hard. Financials were the worst performers as the NPA picture deteriorated further after the extension of IBC suspension, rise in bond yields, and poor growth outlook. Global commodities and rate-sensitive auto and realty were other major losers. Market momentum was higher as the level of activity rose materially. Market breadth collapsed completely on higher volumes. IT and consumers outperformed through all sectoral indices ended the week with losses. INR was also a tad weaker.

The global market remained excessively cautious as US political rhetoric decibel rises. The rise in COVID-19 cases in Europe also triggered some panic waves. Equities sold off sharply. Precious metals suffered major losses as the USD strengthened. Bonds also registered decent gains. Volatility remained elevated.

The outlook and trend for Indian equities remain unchanged from the previous week. The outlook and trend now is neutral for near (daily), short (weekly), and midterm (monthly), implying balanced risk-reward for traders. The near-term momentum has however increased materially in the past few days. indicating increased probability for change in the market outlook and trend.

For this week :
The day traders may avoid trading in 10879-11142 nifty range. The long positions may be held with a stop loss of 10879. Outstanding short positions may be held only with a stop loss of 11142.
Bank Nifty outlook and trend remain negative for the short term (weekly). Fresh long must be avoided. All short positions may be held with a stop loss of 21118. Day Trading may be avoided in the 20645-21375 range. For all long positions maintain a strict stop loss of 20645. For day traders short stop loss would be 21118. The long term (9-15 months) trend in Bank Nifty is firmly negative.