InvestorQ : What is the outlook and trend of Nifty for the week starting from 31stAug?
Dhwani Mehta made post

What is the outlook and trend of Nifty for the week starting from 31stAug?

Answer
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4 weeks ago


The financial sector stocks staged a sharp recovery to lead the benchmark indices to cross over key resistance levels. The level of market activity (volumes, traded value, and a number of trades) was very high. Volatility eased further. Market breadth was positive. Media and Realty were the other two sectors that outperformed the benchmark. Nonfinancial PSE, FMCG, IT, Pharma, Energy, Infra, and Metals were key underperformers. INR gained sharply. Bond yields were lower after RBI signaled its intent to the market.

A dovish Fed kept the "risk-on" trade alive, as the risk assets world over continue to rally. Equities, copper, crude, etc all gained smartly during the week. USD and developed economy treasuries were sold.

The outlook and trend for Indian equities have changed from the previous week. The near term (daily) outlook and trend for Nifty is now neutral (changed from positive last week). The momentum has increased significantly, indicating a much higher probability of a sudden change in the market outlook and trend. For now the near term (daily charts) and midterm (monthly) Nifty trend and outlook is neutral, while short term (weekly) trend and the outlook are still positive. 

For this week :

The day traders may avoid trading in 11353-11433 nifty range. The long positions may be held with a stop loss of 11365. Outstanding short positions may be held only with a strict stop loss of 11775. New shorts may be avoided till Nifty closes firmly below the 11365 levels.

Bank Nifty is still in the buy zone, but with a liberal stop loss as intraday volatility could be large. All short positions must be held with a strict stop loss of 25235. Day Trading may be avoided in 23670-24120 range. For all long positions maintain a strict stop loss of 23645.