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Our markets started the week on a sluggish note on Monday as indicated by the SGX Nifty. As the day progressed, the global cues improved a lot but our markets failed to move in tandem. In the initial hour, Nifty revisited the previous Thursday’s low around 16450 and then throughout the remaining part of the day, stayed in a slender range with a modest recovery in the latter half. Eventually, the Nifty ended the session with a negligible loss a tad above the 16550 mark. This was followed by a back-to-back gap-down opening, where on Thursday, our markets managed to give smart recovery to reclaim 16400 with some authority. However, one more round of selling in US markets poured complete water on this attempt, and as a result, Friday’s session concluded on a negative note around the 16200 mark.

There has been no relief in US bourses and any small rebound is getting sold into, which is having a rub-off effect in all markets across the globe. Although we remained above key supports for the major part of the week, Friday’s session displayed a lot of weakness. We have been continuously alluding to the key support of 16300 – 16260 on a closing basis. These levels are finally broken which has negated the minor upward trend that emerged last week after surpassing the 16400 mark. The market is unable to show any kind of strength at higher levels; but despite this, we are still not getting convinced with the weakness. We would rather reassess the situation in the first half of the forthcoming week and all eyes on crucial levels like 16000 on the lower side and 16400 on the upside. The pragmatic strategy would be to stay light on positions and stock specific also, we are seeing a lot of whipsaws on either side. In fact, it has become a nightmare in trading stocks in the last couple of weeks. Let’s see how things pan out going ahead and we are still hopeful of some recovery in the coming days. If this has to happen, US markets need to provide that much-needed relief.