InvestorQ : What is the outlook and trend for Indian equities starting from 24th Aug?
Niharika Kamble made post

What is the outlook and trend for Indian equities starting from 24th Aug?

Answer
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1 month ago


Indian equities outperformed the global peers led by PSUs and commodities. The bonds however sold off sharply as RBI was missing from the market and spiking consumer inflation clouded further rate cuts. Media, realty, PSUs, energy, and Autos were key outperforming sectors. Pharma and IT were notable underperformers. INR-USD was unchanged for the week. The market activity was intense, as the broader markets (small cap) massively outperformed the benchmark again. Volumes were very high, while volatility eased further. However, Institutional activity was poor.

The global markets had a mixed week with a lot of indecisive moves. US equities ended with marginal gains, while Europe and Japan saw some cuts. Copper and silver ended higher while gold and crude were marginally lower. USD was mostly flat. Safe-haven bonds gained sharply.

The outlook and trend for Indian equities has improved marginally from the previous week. The major change is in Bank Nifty, where the near term (daily charts) outlook remains has improved to positive from neutral. The momentum has increased marginally, indicating that the probability of a sudden change in the market outlook and trend is rising gradually. For now, the near term (daily charts) and short term (weekly) Nifty trend and outlook continue to remain positive. The monthly trend remains neutral.

For this week:

The day traders may avoid trading in the 11280-11345 Nifty range. The long positions may be held with a stop loss of 11142. Outstanding short positions may be held only with a strict stop loss of 11440. New shorts may be avoided till Nifty closes firmly below the 10795 levels. The current up move will reverse only if Nifty closes below 10795. All prices spot.

Bank Nifty has come in buy on the dip for day traders, but for positional traders, it continues to remain in no trading zone. All short positions must be held with a strict stop loss of 22665. Day Trading may be avoided in the 21697-21970 range. A close below 21970 anytime in the next three trading sessions could trigger a larger fall in Bank Nifty. For all long positions maintain a strict stop loss of 21970.