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Below Weekly Market Note 29 April 2023 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets resumed the recovery phase after a pause for a week and gained two and a half percent. The tone was positive from the beginning which further strengthened as the week progressed. Firm global cues combined with decent earnings from select heavyweights helped markets to inch higher. All sectors contributed to the move wherein continued buying in banking,FMCG and auto and recovery in energy and IT majors boosted sentiment.Consequently, Nifty reclaimed the 18,000 mark and finally settled at 18,065 levels. The broader indices also maintained their bullish tone and gained in the range of 2.3%-3.2%.

The coming week is a holiday-shortened one and marks the beginning of a new month too so participants will be eyeing important high-frequency data viz. auto sales, S&P Global Manufacturing PMI and Services PMI during the week.  On the global front, all eyes are now on the outcome of the US Fed meet scheduled on May 3, for their stance on rates amid uncertain economic environment.

As the earnings season would gain pace, participants will first react to the Kotak Bank’s result. Among the prominent names, Ambuja Cement, Tata Steel, Titan, HDFC, Dabur, Hero Motocorp and TVS Motor will announce their numbers during the week along with several others.

We expect the positive tone to continue however Nifty may take a breather around the 18,100-18,200 zone first before inching towards the 18,350. In case of any dip, 17,850 would offer the needed cushion. Meanwhile,volatility ahead of the US Fed meet will keep the participants on edge.We reiterate our preference for performing sectors like banking, FMCG, auto and eyeing further improvement in participation from other key sectors like energy and IT.Traders should align their positions accordingly and avoid taking contrarian trades.

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