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Below the Quote On Market Analysis by Mr. Ajit Mishra - SVP, Research, Religare Broking Ltd

The markets experienced volatility and closed nearly flat amid mixed signals. The benchmark index opened on a weak note, driven by disappointing earnings from Asian Paints. However, strength in IT and banking heavyweights quickly pared the early losses, pushing the index higher in the first half. Despite this, the absence of follow-up buying and continued pressure on select large-cap stocks erased the gains as the session progressed, leading to range-bound movement until the close. Amid the choppy session, banking and IT sectors managed to end in positive territory, while metals, FMCG, and pharma closed lower. Broader indices underperformed, slipping between 0.80% and 1.10%.

The alignment of the banking and IT sectors has sparked hopes for a potential recovery, but sustained momentum in these areas is crucial for a meaningful rebound; otherwise, the market may remain range-bound. As we approach the final phase of the earnings season, heightened volatility is likely to persist. Given this outlook, traders are advised to adopt a hedged approach with a focus on selective stock picking.

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