Weekly Market Recap
It’s a sixth consecutive weekly loss for the major indices, though its look like market has recovered a lot from the bottom; certainly yes…, but, still weekly closing is in red.
In the week gone be the benchmark SENSEX at least I can say after a long time closed down with marginal loss of 100 points, or .34% at 29815. Similarly, NIFTY lost 85 points, or .97% settled at 8660, while BANKNIFTY continued to underperformed with a loss of 1.72%.
Current Outlook
I think, this week market has placed a major bottom and peak at least in foreseeable future unless proven otherwise amid extreme negativity like lockdown in most of the countries and so-called favorable stimulus package for equities announced by major economies.
It is indispensable to understand that markets made a bottom just before the lockdown announced or at a time of extreme negativity for the economy, and I strongly believe short-term peak has also been formed on Friday on the back of some positivity in terms of steep interest rate cut by the RBI and central bankers worldwide.
Chart below evince two major points on NIFTY, bottom at 7530 called selling climax followed by automatic rally stopped at 9000. It’s a 1500-point range. Technically, NIFTY should oscillate in this defined range till the time VIX (Volatility Index) dwindle down to some extent which is atypically high at present. Next few days we may witness a wild swing in NIFTY with-in this range as bear market swing big both ways.
Though, economic outlook is not at all positive in a foreseeable future, however, heuristic view on the stock market appears to be range bound with negative biased.
Conclusion
Bear market rallies appears to be quite lucrative and conducive to exert the investors, but they are not less than embezzlement and shenanigans, hence we should digress them and wait patiently unless we have a propitious environment to invest.
Feedback, comments, suggestion or questions are welcome at below the comment section or at [email protected].
Be safe..!; Be a Savvy Investor..!!
Pankaj