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Below is the Weekly Market Outlook By Dharmesh Shah, Head – Technical, ICICIdirect

* Nifty snapped two week winning streak to settle at 17758.80, down 2% for the week. Nifty small cap index relatively outperformed with a cut of 1.3%

* We expect Nifty to hold 17500 in ongoing corrective phase amid oversold readings, while extending broader consolidation in 17700-18200 amid stock specific action

* Over past 18 months, Nifty has attracted buying demand near its 50dema in each corrective phase measuring 7-9% price wise and 4-5 week time wise barring one instance. With four week corrective phase measuring 5.5% behind us, we expect index to maintain this rhythm. Hence, any dip should not be construed negative, rather be used as incremental buying opportunity

* Broader market indices are expected to extend their consolidation amid lack of faster retracement on either sides and witness stock specific outperformance

* Sectorally, Capital goods, Telecom, Auto are expected to outperform while BFSI provide favourable risk-reward setup. Pull backs in Metal space are expected to be short lived

* In large caps we prefer Reliance, HDFC, SBI, Bharti Airtel, L&T, Tata Motors, SBI Life, Tech Mahindra, while in Midcaps we like Cyient, Coforge, Dixon, ABFRL, Gokaldas Exports, Carborandum Universal, Brigade Enterprises, Greaves Cotton, Jamna Auto, Fortis Healthcare, Radico Khaitan, SCI, TCI Express, NRB Bearings.

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