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

Markets started the first week of the calendar year on a subdued note and lost nearly a percent and a half, tracking feeble global cues. The tone was positive in the beginning but selling pressure in the last three sessions pushed the bulls on the back foot. Consequently, the benchmark indices, Nifty and Sensex, settled closer to the week’s low to close at 17,859.45 and 59900.37 levels. Most of the sectoral indices traded in tandem with the benchmark index wherein banking, financials and IT were among the top losers. The broader indices traded mixed wherein smallcap showed some resilience and managed to end flat while the midcap lost nearly a percent. The coming week will mark the beginning of the earnings season and the IT majors viz. TCS, Infosys, HCL Tech and Wipro will announce their numbers during the week. Besides, banking heavyweight,
HDFC Bank, will also declare its result along with several others. On the macroeconomic front, IIP and CPI Inflation will be unveiled on January 12. Apart from the domestic factors, the performance of the global markets will remain on the participants’ radar. Markets have resumed the corrective trend after a marginal breather and a decisive break below 17,800 in Nifty and 41,500 in the banking index would further add to the pressure. On the downside, the 17,450 zone would act as crucial support for Nifty. Meanwhile, volatility would remain high across sectors with the beginning of the earnings season. Keeping in mind the scenario, we recommend preferring a hedged approach and avoid overtrading.