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

Markets ended lower for the fourth consecutive week and lost over half a percent.  Initially, the tone was sideways but pressure in the global indices, especially the US markets, pushed the index lower in the final sessions. Eventually, both the benchmark indices, Nifty and Sensex, settled around the week’s low at 19310.10 and 64948.60 respectively. Most sectors traded in sync and edged lower wherein metal, banking and financials were the top losers. Meanwhile,the broader indices traded mixed as the midcap ended flat while the smallcap lost over half a percent.

The buoyancy in select heavyweights on a rotational basis is capping the pace of decline so far but the recent fall in the global indices may change the scenario ahead. Among the major world markets, the deterioration of the trend in the US market is the key challenge to tackle. The next major support is at 34200 in Dow Jones Industrial Average (DJIA) and then 33,700 i.e. 200 EMA.

Nifty has respected the short term moving average i.e. 50 EMA twice of late, which currently lies around 19250 and its break could push the index to 19,100 first and then to the 18,900 level. In case of a rebound, it would face hurdles around 19,500 i.e. 20 EMA and 19,650 level. Since we are seeing a mixed trend across sectors, participation should focus on stock-specific approach and maintain positions on both sides. Also, keep trailing stop losses on the rise in the profitable positions, especially in the midcap and smallcap space.

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