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

Markets managed to extend the recovery for the second consecutive week amid volatility. The beginning was subdued however the latest updates on the new COVID variant being less impactful and RBI’s dovish stance triggered a gradual up move in the following sessions. Amid all, noticeable activity on the primary market front combined with a rebound in key sectors kept the participants busy. Consequently, the benchmark indices, Sensex and Nifty ended with healthy gains of nearly 2% to close at 58,786.67 levels and 17,511.30 levels respectively. Amongst the sector, most indices ended in the positive with realty, metals and capital goods were the top gainers. On the broader market front, midcap and small-cap too ended in the green in the range of 2.1-3%.

The coming week is going to be critical for the markets as we have some important data and events are lined up. First, participants will react to the IIP data on Monday. Both CPI and WPI inflation data are also scheduled in the following sessions. The primary market will see 3 IPOs, HP Adhesives, Data Patterns, Medplus Health Services, opening for subscription next week. Importantly, we have the US Fed meet also scheduled and they will announce the outcome on December 15. Apart from these data, the updates on the global COVID situation will remain on participants’ radar.  

Though the fear about the new COVID variant has subsided, we’re still seeing volatility across the globe and expect the trend to continue next week as well. Going ahead, we feel the recovery would remain uneven thus recommend continuing with a positive yet cautious approach. On the index front, Nifty would face resistance around 17,600 and 17,800 zone while on the downside 17,300-17,150 zone would act as a cushion in case of any dip. Since we’re seeing a mixed trend across sectors, the focus should be on stock selection.

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