Impressive growth agenda presented by RIL and strong guidance from IT bellwether Infosys buoyed the market sentiments leading the benchmark indices past many key resistances. Pharma was another outperforming sector. Financials and Realty were notable underperformers. Volumes were average and market breadth poor as broader markets underperformed majorly.INR gained some strength, while bonds were weaker. After a tepid start to the week, the global risk rally gathered momentum and managed to end the week with decent gains. China was however a major underperformer. Besides equity, Silver was a notable outperformer. Bond yields were lower and USD lost marginally.

The near term (daily) outlook for Indian equities has improved to positive from neutral last week. The short term (weekly) trend and outlook also remains positive. The monthly trend remains neutral. The near term momentum has eased a bit further indicating fall in probability for a dramatic change in outlook and trend in the near term.

For this week:

·The day traders may avoid trading in the 10809-10923 nifty range. The long positions may be held with a stop loss of 10779. Outstanding short positions may be held only with a strict stop loss of 10944. New shorts may be avoided till Nifty closes firmly below the 10445 levels. Expect intraday volatility to rise, while implied volatility remains low. Liberal stop losses may be used for intraday trade.

·For Bank nifty, long positions may be initiated only if it remains above 21885 level; with a stop loss of 21785. All short positions must be held with a strict stop loss of 22533. Fresh shorts may be avoided in both Nifty and Bank Nifty for Monday and Tuesday.