Indian markets were volatile due to the rise and fall in expectations from the government stimulus package. However, broadly, they tracked the global trend and ended with moderate losses. The FPI selling was mostly focused at the top end. The broader markets outperformed significantly with the midcap index ended the week with decent gains. Auto & Metal sectors were the top outperformers; while private banks were the worst losers. Pharma also corrected some of its gains. Momentum slowed down materially.

INR and Bonds weakened marginally. The global markets witnessed a significant strengthening of the risk-off mood, as economic concerns grew further across the world. The equities sold off, volatility increased, USD, precious metals, and crude gained. Copper was a major loser. Bonds also rallied. The US-German bond yield spread is now at a multi-year low.

The outlook and trend for Nifty are mostly unchanged from the last week. The only change is that the momentum has further slowed down, making the weekly trend and outlook also neutral with marginally adverse risk-reward. The day traders may avoid trading in 8974-9274 Nifty range on a closing basis. Below 8974, the traders may adopt sell the first strategy. The long Nifty position must be held with a strict stop loss of 8822 on a closing basis. For short positions, stop loss would be 9345. For Bank Nifty, stop losses would be 18680 and 19360 respectively.