Weekly Note By Ajit Mishra, Religare Broking
Below are Views On Weekly Market Analysis By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd
Markets extended gains and scaled to a newer high in the passing week, taking cues from upbeat global markets and supportive domestic cues. The benchmarks spent most of the week in a range and surged in the final sessions helped the index to post decent gains. Finally, both Nifty and Sensex ended with gains of 1.8% and 2% respectively. A mixed trend was witnessed on the sectoral front wherein the IT index topped the gainers’ list while pharma and realty traded southward. Amid all, the broader indices remained under pressure and settled in the red.
The coming week is a holiday-shortened one and participants will be first eyeing WPI inflation data which is scheduled on August 16. In absence of any major event, the news of further unlocking by the states and pace of vaccination drive would remain in focus. On the global front, the rising COVID cases due to the delta variant remain the key concern.
Markets are taking comfort from the upbeat global markets and supportive domestic cues amid the fear of a third COVID wave. However, we’re now seeing restricted participation and expect the same trend to continue, at least in the near future. We thus advise continuing with the “buy on dips” approach but focus largely on index majors and select midcaps for long trades. Among the sectors, participants should focus on banking(mainly private), financials, energy, FMCG and metal for fresh positions while pharma, media and realty may continue to trade lackluster.
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