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

Markets ended 4-week long gaining streak and ended marginally lower, taking a breather after the recent surge.  The tone was subdued from the beginning however the key indices tried to regain some strength in the middle but profit taking in final sessions trimmed the gains and pushed them into the red. Consequently, both the benchmark indices, Nifty and Sensex, closed at 19,646.05 and 66,160.20 levels respectively. Meanwhile, a mixed trend across sectors and the monthly expiry of July month derivatives contracts kept the participants occupied. The broader indices managed to outperform for yet another week and posted strong gains in the range of 1%-2%.

Apart from the earnings, we have been closely following the performance of global indices for cues and the prevailing buoyancy in the US markets gives us the comfort to hold the bullish view. However, we could see some volatility citing resistance around the 35800+ zone in Dow Jones Industrial Average (DJIA).

Nifty has almost retraced to the upper band of the critical support zone i.e. 19,300-19,500 andit may see further consolidation before resuming the trend. On the higher side, it could face a hurdle around the 19,850-20,000 zone during the week. We thus reiterate our advice to focus on identifying stock-specific trading opportunities with favorable risk to reward ratio.

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