Below is the Views On Weekly note by Mr. Ajit Mishra, VP Research, Religare Broking
Markets managed to settle in the green for the fifth successive week, supported by upbeat global cues and a positive start to the earnings season. It was more of the consolidation bias in the index for most of the week however the strong earnings show from IT majors like Infosys and Wipro played a critical role in boosting the market sentiment in the final sessions. Meanwhile, select index majors from the other sectors helped the index to sustain at the higher levels. Interestingly, markets chose to overlook the rising cases in India and higher inflation numbers and settled around the week’s high. Among the benchmark indices, the Nifty index closed at 10,901.70; up by 1.24%.
With no major event, the on-going earnings season and global cues will continue to dictate the market trend. Besides, the progress of monsoon will also be closely watched.
Markets are braving all the storms and gradually inching higher however the participation is largely limited to a handful of index majors. The recent surge was led by better than expected earnings from IT majors but the upside seems capped now as Nifty has again reached closer to the resistance zone of 11,000. Traders should maintain extra caution in the selection of stocks and prefer hedged trades.
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