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Below are Views On Markets traded volatile and settled with a cut of 3%, mainly pressurised by weak global cues By Mr. Ajit Mishra, Religare Broking

Markets traded volatile and settled with a cut of 3%, mainly pressurised by weak global cues. The benchmark was in consolidation mood for most of the week but a sharp decline on Friday turned the sentiment bearish. The rising bond yields in the US and the geopolitical tension between the US and Iran spooked markets across the globe including India. Besides, the growing fear of the next wave of COVID cases in India further dampened the sentiment. Consequently, the Nifty ended lower by 3% to close at 14529.15 level. On the sector front, except Metals which ended with strong gains, all the other indices ended with losses wherein heavyweights like Auto, Banking and IT were the top losers. Interestingly, the broader markets continue to outperform the benchmark wherein both the indices ended in the green.

The coming week marks the beginning of the new month also and participants will be eyeing important domestic data alongside the global cues. First, the auto sales data will start pouring in from March 1. On the economic front, Markit Manufacturing PMI and Market Services PMI data scheduled on March 1 and March 3 respectively. 

Markets will first react to the GDP data which came in after the market on Friday. The economy grew marginally in the third quarter at 0.4%, after facing a contraction in the previous two quarters. Going ahead, the rising bond yields continue to remain a key concern for equity markets worldwide. Although the recent Fed statements have been comforting. 

 Indications are pointing towards further slide in the Nifty and the next support at 14,400 and 14,200 levels. We expect volatility to remain high so traders should maintain extra caution in risk management aspects. The prudent strategy would be to use rebound to create shorts using options instead of naked futures.

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