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Markets traded volatile and settled with a cut of over a percent as participants preferred to book some profit off the tables. Initially, the bias was positive, thanks to upbeat macroeconomic data but subdued global cues combined with fear of lockdown due to sudden rise in COVID cases dented sentiment as the week progressed. Consequently, the Nifty index slipped below 15,000 to close at 14,981.7 level. A mixed trend was witnessed on the sectoral front wherein energy, metal and PSU banks witnessed decent traction while auto, consumer durables and IT ended lower. Amid all, the broader indices outshined the benchmark and closed in the green.

We expect volatility to remain high next week due to the scheduled expiry of February month derivatives contracts. On the data front, participants will be eyeing the important macroeconomic data viz. GDP numbers and core sector data on February 26. Besides, the update on COVID cases will also remain on their radar.

We’re seeing a healthy correction in the markets however position management becomes difficult during such phases. A decisive break below 14,800 may result in further slide in Nifty. On the downside, the 14,450-14,650 zone would act as a cushion. Considering the scenario, we advise limiting naked leveraged positions and keeping extra caution in the selection of stocks.