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Quote on Weekly Market Outlook 14 January 2023 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets remained in the consolidation mood for yet another week and ended with modest gains.The beginning was upbeat, tracking favorable global cues however gains fizzled out in the following sessions citing mixed signals. The recovery in the final session aided the index to end higher, thanks to favorable macroeconomic data and a rebound in IT majors post earnings. Eventually, the benchmark indices, Nifty and Sensex, settled at 17,956.60 and 60,261.18 levels. Among the sectoral pack, IT, metal and auto posted strong gains while defensive viz. FMCG and pharma traded subdued. Meanwhile, the broader indices underperformed the benchmark and ended marginally lower. Going ahead, earnings and global cues will largely dictate the trend. On the macroeconomic front, we have WPI Inflation data scheduled on January 16. On the earnings front, banking stocks will largely be in focus. First, markets will react to the HDFC bank’s number. In the following sessions, participants will be eyeing Indusind Bank, Kotak Bank and ICICI Bank results. Besides, prominent names from other sectors like Hindustan Unilever, Asian Paints, Ultratech Cement and JSW Steel will also declare their results along with several others. The recent price action shows a tussle around 17,800 levels in Nifty and a decisive close above 18,100 would ease some pressure. Among the sectoral pack, metal looks strongest and continued recovery in the IT pack will also be on participants‘ radar while others are offering mixed signals. Align your positions accordingly while keeping a check on leveraged trades citing the prevailing volatility.

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