Below is the Views On Markets managed to end higher amid consolidation bias last week by Mr. Ajit Mishra, VP - Research, Religare Broking Ltd
Markets managed to end higher amid consolidation bias last week. The cues were mixed, from the both domestic and global front, which capped the movement in the benchmark. However, volatility remained high on the back of the Q2FY21 earnings announcement from select Nifty majors. Nonetheless, healthy buying interest in banking, financials, metal and auto stocks helped the Nifty index to settle above 11,900. The broader markets too participated during the week as both Midcap and Smallcap ended higher by 3.5% and 3.4%.
We expect fireworks on street next week too, thanks to the list of events and data lined up ahead. On the global front, talks on the US stimulus package and countdown to the US presidential election will remain on the participants' radar. Besides, COVID-related updates from Europe will also be the focus. At the same time, scheduled derivatives expiry and prevailing earnings season would further add to the volatility.
Some of prominent names like Kotak Mahindra Bank, Bharti Airtel, Tata Motors, Axis Bank, Dr Reddy, Hero Motocorp, LT, Maruti, etc will announce their numbers during the week along with several others.
Indications are in the favor for further up move but sustainability would depend on how the above events unfold. We suggest maintaining a positive stance till Nifty holds above 11,700. We’re seeing rotational buying on the sectoral front thus traders should spend more time identifying stocks and overnight risk management. The recent buoyancy in the broader market is encouraging but we feel one should stick only with the quality names.
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