InvestorQ : What will be the market outlook and the Nifty range for the week starting from 14th September?
natasha Samani made post

What will be the market outlook and the Nifty range for the week starting from 14th September?

Answer
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2 weeks ago


The benchmark indices ended the week with over 1% gains in a week that witnessed a significant fall in market activity. Volumes were much lower as compared to the past couple of monthly averages. Commodities (due to global correction in commodity prices) and financials (indecision over interest for moratorium period) were the worst performers. Market breadth was poor. Bonds sold off again despite RBI effort to talk yields lower. INR also ended a little weak.

The global markets were mixed last week. USA and China Equities underperformed, while emerging markets, Europe, and Japan did well. Volatility eased further. USD and Bonds gained, while industrial commodities, crude, and silver ended the week with decent losses.

The outlook and trend for Indian equities remain unchanged from the previous week. The outlook and trend now are neutral for near (daily), short (weekly), and midterm (monthly), implying balanced risk-reward for traders. The near term momentum has slowed marginally, indicating a slightly lower probability for change in the market outlook and trend.

For this week :

The day traders may avoid trading in the 11327-11513 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 11642. Last week stance of not trading in this range worked out well as the market bounced back from 11185 to 11450+

Bank Nifty is now in a neutral zone. Fresh long must be avoided. All short positions may be held with a stop loss of 22695. Day Trading may be avoided in the 22010-22670 range. For all long positions maintain a strict stop loss of 22040. A close below 21915 anytime in the next two weeks could trigger a midterm (9-15 months) down move in Bank Nifty.