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

Markets edged higher for the fourth successive week and gained nearly a percent. A steady up move in the US markets combined with continued buying across sectors kept the tone positive for most of the week. However, a sharp cut in the IT majors trimmed the gains in the final session. Eventually, both the benchmark indices, Nifty and Sensex, settled at 19745 and 66,684.20 levels respectively. Meanwhile, the traction continued on the broader front and both midcap and smallcap gained in the range of 0.7%- 1.8%.

We expect higher volatility in the coming week due to the scheduled monthly expiry of July month derivatives contracts. However, the prevailing buoyancy on the global front, especially the US markets, would help in keeping the tone positive.

Nifty has almost tested the new milestone i.e. 20,000 and gained over 7% in the last four weeks, which has pushed the oscillators into the overbought zone. It would be healthy if we see some consolidation now, before making further progress. We expect Nifty to respect the 19,300-19500 zone in case of any dip while any attempt to surpass the 20,000-20,200 zone may attract profit booking. Meanwhile, participants should focus on more position management and prefer sectors that are showing relatively higher strength. The sharp dip in IT has derailed the momentum and we could see a breather in auto and FMCG too after the phenomenal surge. However, banking, financials, pharma and metal look promising for further up move so traders should align their positions accordingly.

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