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

Markets traded buoyant for the second successive week, largely led by favourable global cues. To start with, the dovish tone of the US Fed boosted sentiment across markets including India. Besides, strong earnings from select stocks from the banking and financials pack further aided the positivity. Consequently, both Nifty and Sensex ended higher by 2.6% and 2.7%, to close at 17,158.25 and 57,570.25 levels respectively. Meanwhile, sectoral indices traded mixed wherein banking along with a rebound in the metal and IT remained in the limelight while the recent outperformers viz. auto and FMCG witnessed some profit taking and ended flat to marginally lower. The broader markets too supported wherein Midcap ended with 2% gains whereas Smallcap underperformed but still managed to end 0.5% higher.
 
The coming week marks the beginning of the new month also so participants will be eyeing crucial data viz. auto sales, PMI numbers and GST collection figures for cues. The highlight would be the MPC meet after the recent Fed policy and its outcome is scheduled for August 5.
 
On the earnings front, we have some big names like ITC, M&M, Dabur, Titan and Interglobe Aviation for results along with several others.
 
Nifty has surpassed the crucial hurdle of June month’s high i.e. 16,800 decisively and we’re now eyeing 17,400. Participants should align their positions accordingly and look for buying opportunities on dips. While all the sectors are contributing to the move, we believe the focus should still be on the top performers rather than expecting a turnaround in the beaten-down names. We reiterate our preference for auto, FMCG, banking and financials and remain selective in other sectors.

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