InvestorQ : What is the outlook and trend for Nifty for the week starting from 12th October?
ramya Bhaskaran made post

What is the outlook and trend for Nifty for the week starting from 12th October?

Answer
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2 weeks ago


Indian equities outperformed global peers to record one of the best weeks in recent months. The benchmark indices reached closer to their highest levels recorded in early 2020. The volume of activity was however not commensurate with the level of the market. Breadth was poor, volatility higher, volume average to below average. The gains were mostly led by IT and private banks. Midcap, Energy, Media, FMCG, Metals, and Realty were notable underperformers. INR and Bonds ended the week with decent gains.

The hopes of US stimulus, earnings optimism in Europe, and encouraging data from China lifted equities to record the best week since July. Emerging markets did better than the developed markets as global investors hunted for growth. Commodities also recovered with crude and silver recording best gains. USD and Bonds ended the week with decent losses.

The outlook and trend for Nifty changed positively from last week. The outlook and trend now are positive for near (daily) and short (weekly) terms, while for midterm (monthly) it continues to remain neutral. The momentum remains high, indicating a good probability for change in the market outlook and trend.

For this week:

The day traders may avoid trading in the 11433-11623 nifty range. The long positions may be held with a stop loss of 11416. Outstanding short positions may be held only with a stop loss of 12032.

Bank Nifty outlook and trend has also changed from negative to neutral for short term (weekly). All short positions may be held with a stop loss of 24060. Day Trading may be avoided in the 22842-23125 range. For all long positions maintain a strict stop loss of 22890. The long term (9-15 months) trend in Bank Nifty remains negative.