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Below Quote On The Weekly Market Note By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets drifted lower for the third successive week and lost nearly half a percent.  The tone was more of a consolidation for most of the week but a dip on Friday pushed the index in red.  Consequently, both the benchmark indices, Nifty and Sensex, settled around the week’s low at 19428.30 and 65322.60 respectively. Meanwhile, a mixed trend on the sectoral front kept the participants busy wherein positive moves continued in the IT and pharma pack while realty and banking continue to struggle. Amid all, the broader indices managed to end in the green for yet another week and gained nearly half a percent each.

The continued pressure in the banking pack is fading the recovery attempts however stability in select heavyweights is capping the pace of decline. Besides, resilience in the global markets is also helping in restricting the downside so far. 

The recent price action indicates the corrective tone to continue in Nifty, after the failed attempt to surpass the hurdle at 19,650. And, a decisive break of the recent swing low i.e. 19,300 may push the index to 19,100. Besides, we are eyeing 43,850 in the banking index as the next key support, which could prompt some recovery. Meanwhile, traders should focus more on risk management citing mixed signals and staying stock-specific.

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