Markets started the new trading week on a feeble note and shed over 2% in continuation to the prevailing corrective phase. The bias was downbeat from the beginning citing the rising COVID cases globally due to the new variant. The benchmark remained under pressure in the first half as noticeable selling was witnessed across the board. However, rebound in the select index majors pared some losses in the latter half. Finally, Nifty settled around 16,614 levels; down by 371 points. All sectors traded in line with the index and ended lower wherein Markets started the week on a feeble note and shed over 2% in continuation to the prevailing corrective phase. The bias was downbeat from the beginning citing the rising COVID cases globally due to the new variant. All sectors traded in line with the index and ended lower wherein PSU, realty, media and metal were the top losers. The broader indices also traded under pressure and lost nearly 4% each.
Markets reacted to the news of a sharp jump in the COVID cases globally which may result in a lockdown. Though the situation is under control domestically at present, any impact on the global economic recovery would dent our prospects too. Besides, the continuous outflow of the foreign fund was also weighing on the sentiment. We reiterate our cautious view on markets and suggest focusing more on risk management. Investors, on the other hand, can start accumulating quality stocks selectively from a long term investment perspective. Nifty has the next major support at 16350 levels. We almost hit the target of 16400 and the Nifty witnessed a bounce. The trend however continues to remain bearish and we could use higher levels to go short for the next target of 16250-16150. The upside for the index is currently capped and the trend is clearly down!Resistance: 16650, 16750, 16850
Support: 16550, 16450, 16350
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