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Weekly Note 18 February 2023 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets continue to trade volatile amid mixed cues and ended with a gain of nearly half a percent.After the initial downtick, Nifty regained some strength in the middle, tracking favorable global cues and buying in select heavyweights. However, the profit taking in the final sessions trimmed the gains and it finally settled at 17,944.20 levels. On the sectoral front, buoyancy in the IT and energy heavyweights kept the tone positive while banking and financials were under pressure. Meanwhile,the broader indices underperformed the benchmark and lost over a percent each.

With all the major events behind us, the performance of the global markets, especially the US, will
be in focus for cues. Besides, crude and rupee movements will continue to offer indications in between.

We do not expect any surprises from the global front however intermediate consolidation/profit taking in the US markets may continue to trigger volatility in between. The recent underperformance of the banking and financial pack may continue so the participation of other sectors like IT, energy, FMCG and auto could play a critical role ahead. On the index front, Nifty should hold 17,700 to extend the recovery and inch towards the 18,200 -18,350 zone. Meanwhile, we recommend participants to stay selective and prefer sectors that are showing strength and choose index majors over others.

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