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Below is the Daily Market Analysis 20 August 2022 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets ended marginally in the green last week as profit taking on Friday trimmed all the gains. The tone was upbeat for most of the week, tracking favourable global markets and continuous buying from foreign investors. However, the decline on the final day engulfed the gains of the last 3 sessions as participants preferred to book some profits off the table. Consequently, the benchmark indices, Nifty and Sensex, lost the majority of the weekly gains and settled at 17,758 and 59,646 respectively. Most sectoral indices traded in tandem and ended flat to slightly higher however realty and FMCG managed to post decent gains. Amid all, the broader indices, midcap and smallcap, too witnessed profit booking.

In the coming week, the scheduled derivatives expiry will keep the participants busy. Besides, global cues especially from the US and figures of foreign flows will remain on the radar.
 

Markets may witness consolidation after five weeks of the successive rise and it would be healthy. We hardly saw any major decline in the index in the recent phases of consolidation however a lot would depend on the performance of US indices next week where we see still see room for further upside. We believe the 17,300-17,600 zone would provide a cushion in Nifty next week while a rebound towards the 17,850-18,100 zone may attract profit booking. It’s prudent to focus more on risk management as correction/consolidation in the index usually derails the momentum even in the top-performing sectors. For fresh positions, we suggest preferring less volatile stocks until the trend resumes.

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