InvestorQ : What is the outlook and trend for Indian markets starting from 21stDecember20?
Deepali Khupte made post

What is the outlook and trend for Indian markets starting from 21stDecember20?

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5 months ago
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Nifty recorded its 7th consecutive weekly gain led by pharma and IT. The gainers of past weeks (PSU Banks, FMCG, Auto, etc.) took a back seat. Small-cap however continued to outperform the benchmark indices. The market breadth was however not matching indicating a move towards quality. Financials were notable underperformers while Realty was the top-performing sector. Volatility remained subdued. Volumes were high. FPI bought about Rs11k cr, and DII sold about the same amount. INR gained some strength while bonds ended the week unchanged.

Global assets rallied as stimulus hopes were given fresh impetus by the Fed. Equities, precious metals, crypto's, bonds, and commodities all rallied smartly, as the USD weakens further breaking down below key support levels. Bitcoin, Oil, and Silver were the largest gainers. Volatility eased materially. EM did better than their developed market counterparts.

The outlook and trend for Indian markets remain unchanged from the previous week. However, the momentum has diminished somewhat, indicating a lower 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 13515 - 13670 nifty range. The long positions may be held with a stop loss of 13110.

· For Bank Nifty The near and short-term trend is presently neutral. All short positions may be held with a stop loss of 31110. Day Trading may be avoided in the 30345 - 30695 range. For all long positions maintain a strict stop loss of 30205.
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