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Below is on Weekly Note 11 February 2023 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

It turned out to be a muted week as the benchmark indices hovered in a narrow range and ended almost unchanged. The tone was subdued from the beginning and mixed cues from both the domestic and global front capped the movement till the end. Consequently, the Nifty index settled flat at 17,856.50 levels. Among the sectoral indices, the decline continued in energy and metal pack while profit taking in select FMCG and auto majors was also weighing on sentiment. At the sametime, buying in IT and financials combined with a recovery in realty and pharma counters restricted the fall and kept the traders busy. Meanwhile, the broader indices outperformed the benchmark and gained in the range of 1%-2%.

In the coming week, participants will first react to the IIP data in early trades on Monday. On the macroeconomic front, CPI and WPI Inflation on the domestic front and US inflation will be on focus during the week. Besides,movement in crude and rupee will also be on their radar for cues.

On the earnings front, some prominent names like ONGC, Siemens, Eicher Motors, Grasim and Zee will announce their numbers along with several others.

We expect the prevailing consolidation to end soon and either side's decisive break from the 17,650-17,900 zone could trigger the next directional move in Nifty. Meanwhile, we recommend continuing with a selective approach and preferring index majors and select midcap for long trades. Among thesectoral pack, we reiterate our preference for IT, FMCG and select auto and banking counters for long trades while others may continue to trade mixed. Participants should align their positions accordingly with a focus on risk management.

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