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Below are Views On Markets traded under pressure for the second consecutive week by Mr. Ajit Mishra, VP Research, Religare Broking.

Markets traded under pressure for the second consecutive week and lost over one and a half percent. Subdued global cues combined with the risk of a second wave of COVID cases was weighing on the sentiment. The benchmark inched sharply lower in the middle however rebound in the final session marginally trimmed the losses. Most sectors traded in tandem with the benchmark and ended lower. The broader indices too witnessed a similar trend and closed in the red. On the benchmark front, Nifty settled at 14,507.3; down by 1.6%. 

The coming week is a holiday-shortened one and we expect volatility to remain high. It marks the beginning of a new month also so macroeconomic data i.e. core sector and auto sales numbers will remain in focus. Besides, updates related to the COVID situation in India and cues from the global markets will also be closely tracked by the participants. 

The recent surge in the COVID cases combined with feeble global cues has turned the participants cautious. Besides, the divergence between Nifty and the banking index amid excessive volatility across the board is keeping the traders guessing over the next directional move. The negative bias in Nifty would reverse on the breakout above the short-term moving average (20 EMA) which currently lies around 14,760 levels. On the flip side, the next major support exists at 14,000. We feel traders should limit leveraged positions until we see some clarity emerging.

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