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Below is on Weekly Market Outlook 01 April 2023 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets finally witnessed a breather after three weeks of a slide and gained two and a half percent. The tone was subdued in the first two sessions citing the continued outflow of foreign funds but sustained recovery in the US markets triggered a sharp rebound in the final sessions. Consequently, the benchmark indices, Nifty and Sensex, settled around the week’s high at 17,359.70 and 58,991.50 respectively. All sectors participated in the recovery wherein banking, IT and metal posted strong gains. The broader indices too recovered after the slide and ended higher.

The coming week is also a holiday-shortened one and scheduled events and data would keep the participants busy. We have auto sales numbers, which start pouring in at the beginning of a new month.  On the macroeconomic front, S&P Global Manufacturing PMI and Services PMI data are scheduled on April 3 and April 5.  The key highlight would be the outcome of the MPC policy review meet on April 6. Apart from domestic factors, global cues and trends of foreign flows will also be in focus.

We expect the recovery to strengthen next week and eyeing 17,600 in Nifty now. Meanwhile, the 17,200 level would be critical to hold to maintain the positive bias.  While all sectors are contributing to the move, banking, financials and FMCG should be preferred over others for fresh longs. We feel it’s prudent to stick with largecap counters and stay selective in midcap and smallcap space.

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