Morning sir, please share your views on the market outlook and Nifty for the week starting from 01st March 2021
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The market technical has weakened sharply with rising in momentum. The outlook and trend for Indian markets this
week are negative. The preferred trade from here is “sell on rising”. The strong momentum indicates a materially higher
probability of a sudden change or acceleration in the trend. The trend and outlook for Nifty and Bank Nifty are firmly
negative indicating an adverse risk-reward ratio.
For this week-
• The day traders may avoid trading in 14340-14615 nifty range, as in this range volatility may be high and stop losses on
both sides may get hit. The long positions may be held with a stop loss of 14264. Non-positional short positions may be
held with a stop loss of 14840.
• For Bank Nifty also day Trading may be avoided in the 34670-35100 range. For all long positions maintain a strict stop loss
of 34485. Non-positional short positions may be held with a stop loss of 35465.
FPIs dumped Indian equities, INR, and bonds on fears of a repeat of the 2013 unwind of carrying trade. The sharp rise in global bond yields made investors jittery. Consequently, Indian equities, bonds, and INR corrected sharply with good volumes.
The market breadth was still good as domestic investors did not appear panicking and buying in broader markets
sustained. The level of activity remained high. Volatility jumped to the highest since August. Sector-wise, metals were massive
outperformers; while IT, financials, auto, and pharma were notable underperformers.
A sharp jump in bond yields across the world on rising inflationary expectations led to material sell-off in risk assets.
Equities sold off across China leading to the collapse. Volatility jumped up to multi-month highs. Precious metals also
corrected sharply, while crude and metals were higher.
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