Hot Stocks | Sun TV, Lupin likely to give up to 9% return in the short-term

Barring a couple of days, the last week was a challenging one for our markets. In the previous week, things looked in control with respect to coronavirus but all of a sudden, the aberration was seen in numbers that certainly spooked market participants.

In addition to this, some macro data on the domestic front like the IIP and inflation numbers disappointed to a great extent.

Eventually, it appeared as if the market had digested this and was about to move higher.

Suddenly from nowhere, the Supreme Court commanded telecom companies to pay AGR dues and this led to a sharp selloff in few banking heavyweights. As a result, Nifty corrected sharply last Friday to erase a major chunk of weekly gains.

With reference to our previous week’s commentary, things were very much on track and as per our anticipation, Nifty surpassed the hurdle of 12,150 – 12,170.

But these developments resulted in retesting of 12,100 mark. With a broader view, the previous week’s recovery from 11,600 was crucial for the market and hence, as of now the undertone still remains bullish.

As far as levels are concerned, 12,090 followed by 11,990 would be seen as a key support zone for Nifty. Within this large uptrend, if index slides below 11,990 then we may see some pause to the optimism.