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Quote on Weekly Market Outlook 17 September 2022 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets finally settled with a cut of over one and a half percent amid feeble global cues. The benchmark showed resilience in the initial sessions however the fear of aggressive rate hikes and selling by the foreign investors dented sentiments in final trades. Consequently, both Nifty and Sensex, settled around the week’s low to close at 17,530.85 and 58,840.79 respectively. Mostly sectoral witnessed pressure wherein IT index plunged sharply lower and shed nearly 7%. The broader indices also lost in the range of 1-1.5%.

In absence of any major domestic data and events, participants will be closely eyeing the US Fed meet, scheduled on 20-21 September.  Besides, the trend of the foreign flow would also remain on their radar.

Markets have shown tremendous strength so far amid the global turmoil however the lingering fear of aggressive rate hikes by the US Fed has capped the upside and also trigger intermediate declines. The prevailing market structure combined with cues from the US markets is pointing towards further fall. A breakdown below 17,500 in Nifty could push the index to the 17,150 zone. In case of any rebound, the 17,800-18,100 zone would act as a hurdle. We feel participants should stay light and maintain positions on both sides. Amid all, we reiterate our preference for private banking counters and suggest using correction to accumulate them in a staggered manner. On the flip side, IT and pharma look weak to us and can be considered for short trades.

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