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Below Quote Daily Market Analysis 10 June 2023 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets settled almost flat for the second consecutive week amid mixed cues. The beginning was subdued but buying in select heavyweights in the middle tried to change the tone. However, uncertain global cues combined with the continued underperformance of the banking pack not only capped the upside and also triggered profit taking in the final sessions. Eventually, both the benchmark indices, Nifty and Sensex, closed almost unchanged at 18,563.40 and 62,625.63 levels respectively. Meanwhile, key sectoral indices witnessed a mixed trend wherein auto, energy and realty posted decent gains while IT and FMCG ended lower. Amid all, the broader indices managed to outperform for yet another week and gained in the range of 0.5%-1.2%.

All eyes are now on the US Fed policy outcome for cues, which is scheduled on June 14. In the following sessions, the European Central Bank (ECB) and Bank of Japan will also announce their policy decision. On the macroeconomic front, participants will be tracking IIP data, CPI Inflation and WPI Inflation during the week. Apart from these factors, the updates on progress of the monsoon will also remain on their radar.

The last two weeks' move of the benchmark index shows indecisiveness among participants around the record high and it is likelyto end soon. We recommend maintaining a positive stance till Nifty holds 18,400 and suggest focusing on sectors, which are showing relatively higher strength like auto, FMCG & realty and picking selectively from others. In case of a decline, the 18,100-18,200 zone would offer the needed cushion. We feel the prevailing outperformance may continue in the broader indices so continue to add quality stocks from midcap and smallcap space.

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