InvestorQ : What is the outlook and trend for Indian equities starting from 05th October?
Rishita Das made post

What is the outlook and trend for Indian equities starting from 05th October?

Answer
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7 months ago
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The recovery in global markets, strong auto sales numbers, positive current account balance, and no rise in central govt borrowing led the Indian equities higher last week. Private banks were the largest gainers on short-covering and some bargain hunting. PSUs, FMCG, and Energy were relatively underperforming sectors. The volumes were below average, and market breadth was positive as small and midcap stocks outperformed. Volatility was lower. INR and bonds ended the week with some gains.


Reversing the trend from the past couple of weeks, the global markets resumed the risk rally. The rally was however checked by the reports of POTUS testing positive for COVID-19. Nonetheless, equities ended the week with decent gains. USD weakened, leading the crude oil and metals down, while precious metals recorded some gains. US bonds sold off


The outlook and trend for Indian equities remain unchanged from the previous week. The outlook and trend now are 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 the 11357-11513 nifty range. The long positions may be held with a stop loss of 11278. Outstanding short positions may be held only with a stop loss of 11535.

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 22678. Day Trading may be avoided in the 21675-22384 range. For all long positions maintain a strict stop loss of 21788. For day traders short stop loss would be 22678. The long term (9-15 months) trend in Bank Nifty is firmly negative.
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