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

Markets experienced a dip after rising for three consecutive weeks and lost over a percent. The tone was subdued from the beginning citing pressure in the IT major, Infosys, post numbers and that further deteriorated with a decline in other IT heavyweights as the week progressed. However, resilience in other key sectors like banking, energy and auto combined with a rebound in the defensive pack viz. pharma and FMCG eased some pressure. Amid all, Nifty managed to hold 17,600 and settled at 17,624.05; down by 1.14%. Meanwhile, the broader indices outperformed the benchmark and ended in the green

The focus would remain on earnings for cues in the coming week, in absence of any major event. First, participants will react to the Reliance and ICICI Bank’s numbers. In the following sessions, IndusInd Bank, Bajaj-Auto, Bajaj Finance, Maruti, Hindunilvr, Axis Bank, ACC, Wipro, Ultracemco and Kotak Bank will announce their number during the week along with several others. Besides, the scheduled monthly expiry of the April month derivatives contract will keep the participants busy.

It is a healthy correction so far and Nifty should hold the 17,400-17,500 zone to the stage next leg of recovery else consolidation would set in again. On the higher side, the 17,850-18,100+ zone would act as a strong hurdle. Meanwhile, the participant should maintain stock-specific approach with a focus on risk management. We reiterate our preference for banking, financials and FMCG pack for long trades and suggest avoiding IT until we see some sign of reversal.

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