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Below Quote Daily Market Analysis 21 July 2023 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets witnessed profit taking on Friday and shed over a percent, tracking weak cues.  After the initial gap-down opening, Nifty drifted gradually lower and finally settled at 19745 levels. The decline was widespread wherein the IT pack faced the maximum heat, followed by FMCG and energy majors. Meanwhile, the broader indices traded mixed, capping damage to the market breadth.

We expect Nifty to spend some time around the current levels, to digest the recent surge and it would be healthy. Meanwhile, participants should focus more on risk management for the existing trades and prefer sectors that are showing resilience for fresh positions. Among the key sectors, banking and financials still looks promising for further up move while the crack in the IT pack has delayed its reversal so plan accordingly.

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