Weekly View for Markets - Vinod Nair - Geojit

"Benchmark indices had a positive week and gained by around 5.7%. Although the number of new infections remained elevated in India, the general expectation was that the economy would slowly start emerging out of restrictions, post-Lockdown 4.0, except in the hotspots. Globally, the markets were heaving a sigh of relief after more stimulus packages were announced by China, the EU, and other countries, following the easing of lockdown measures. However, these gains were somewhat clouded by the persistent US-China tensions, which threatened to affect the global trade and recovery process. The banking index in India made a strong comeback this week, on the back of some value buying. However, the concerns with regards to heightened NPAs remain, and the market is expecting sector-focused relief packages and measures to boost demand in the economy."

WEEK AHEAD

"The Nifty has closed above its range of 9500 and if it is able to sustain those levels it can go up to 9800. However, on a fundamental level, there are no reasons for the rally to sustain, and investors are advised to remain cautious. Economic data and its commentary, and the new lockdown norms, based on the spread of infections, can have an impact on the markets."

Source : Equity Bulls

Keywords