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Below the Daily Market Analysis 20 December 2023 by Mr. Ajit Mishra, SVP - Technical Research, Religare Broking Ltd

Markets witnessed a bout of profit taking and lost nearly one and a half percent, in continuation to the prevailing corrective phase.  After the initial uptick, Nifty hovered in a range in the first half however a sharp cut in the heavyweights across sectors completely turned the tone. It eventually settled closer to the day’s low at 21,150 levels.  Among the key sectors, metal, energy and realty were among the top losers. Besides, the broader indices too felt the heat and lost over 3.5% each.

This is the first serious slide in the Nifty index after the seven weeks of up move and it may result in further dip. However, it is too early to conclude the uptrend has faded until the Nifty breaks 20,700 i.e. 20 EMA on the daily chart. We reiterate our preference for index majors and suggest accumulating quality names during this phase. At the same time, the pressure could be higher in the midcap and smallcap space so participants should reduce their positions and maintain strict stop losses in remaining trades.   

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