Weekly Market Recap

This week there was a tug-of-war between bulls and bears at the vicinity of last week high as NIFTY had a alternative days of gain and loss till Friday, however, bulls emerged as a conquistador at the end, thanks to the RBI for surprising rate cut and stimulus measure announced abruptly.

In the week gone by the benchmark SENSEX closed up by 429 points, or 1.38% at 31588, similarly, NIFTY gained 154 points, or 1.7% to close at 9266. While BANKNIFTY outperformed with a gain of 3.86%.

Current Outlook

There was pandemonium in the market at the extreme higher end this week as every time bears made an attempt to  exert the market from their highs and somehow they managed to do so (in the shaded part of the chart below), but the battle was impregnable and outcome went into the favour of bulls, though RBI stimulus measures acted as a catalyst and favoured the bulls.

At least in short-term, I think market conditions are ameliorating. Market breadth was quite strong through-out this week and number of stocks were making new lows have dwindled drastically. Most importantly, at least for time being market has stopped reacting negatively on negative news. Furthermore, the aggressive sectors like technology and financials are taking the rein in their hands. This behaviour is quite prolific.

Notwithstanding, markets have enough room to rally further, however, sharp rally from here could take a shape of rising wedge and they are bearish in nature which normally resolve downward more often than not. At the same time, the more interesting phenomena developing is the fear of missing out the rally that is now evidently becoming more ingrained.

It is quite possible before bears resurgent and orchestrate for the future course of action they may digress themselves. Hence, we can reckon at least in short-term market outlook also seems to be ameliorating as with the current market conditions.

Conclusion

Though rally from here could be tantalising and we should ruminate profoundly before chasing the stocks as bear market rally are full of shenanigans that can stopped and may get reverse suddenly. Buying can be initiated but be prepared with your selling discipline.

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 Be Safe…!; Be a Savvy Investor..!!

Pankaj