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Below Quote Daily Market Analysis 08 October 2022 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets ended a 3-week long losing streak and gained nearly one and a half percent amid mixed cues. The beginning was downbeat however rebound in the global markets fuelled recovery as the week progressed and helped the index to close in the green. Consequently, the benchmark indices, Nifty and Sensex, closed at 17,314.6 and 58,191 respectively. Among the key sectoral indices, recovery in the IT majors combined with buying in the banking majors played a crucial role. Besides, buying in media, metal and realty packs also added to the positivity. Meanwhile, the broader indices outperformed the benchmark and gained nearly 2.5% each.

In the coming week, participants will be eyeing important macroeconomic data viz. IIP, CPI and WPI for cues. Besides, the week also marks the beginning of the earnings season with IT majors like TCS, Infosys, HCL Tech and Wipro announcing their numbers along with two other heavyweights i.e. Bajaj Auto and HDFC Bank during the week. Amid all, the performance of US markets, FIIs trend, and movement in currency and crude will also remain on their radar.

The recovery in the global indices, especially the US, has triggered the recent rebound but the lack of sustainability in the move is causing excessive volatility. However, we feel domestic factors like earnings and macroeconomic data may take the front seat and dictate the trend ahead.  On the benchmark front, the 16,800-17,100 zone would act as a cushion in Nifty while a rebound towards the 17,580-17,900 zone may attract profit taking again. Since all the sectors are witnessing traction on a rotational basis, the focus should be on the top-performing counters from the respective sectors and accumulate them on dips.

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