What is the trading view & market outlook for the week starting on 8th February 2021?
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Despite the sharp recovery from the previous week's lows, the outlook and trend for Indian markets remain unchanged. It continues to remain in a territory where positional short positions may be considered as risk-reward continues to favor shorts. The momentum also continues to rise; indicating a materially higher probability of a sudden change in the trend. The short-term (weekly) and midterm (Monthly) trend and outlook for Nifty are firmly negative indicating an adverse risk-reward ratio. The near-term (daily) outlook and trend for Nifty is neutral implying an even risk-reward ratio. For this week-
• The day traders may avoid trading in 14340-14590 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 14610.
• For Bank Nifty also short and midterm trends are negative, while near term trend is neutral. Day Trading may
be avoided in the 34670-35100 range. For all long positions maintain a strict stop loss of 34890.
The absence of any negative surprise in budget led to massive short covering and fresh buying by foreign institutions and local
investors. An expected status quo on policy rates and accommodative monetary policy stance further buoyed the markets.
Some top results from PSU banks made sure that PSU Banks and financial services sectors massively outperformed the
benchmark indices.
Metals and Realty were other major outperformers on infra push in the budget. IT was the notable
underperforming sector. Market breadth was good, though broader markets underperformed the benchmark indices.
The level of activity was very high in relation to the past 3-month averages. INR added some strength while bonds ended
sharply down.
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