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Below the Quote on Weekly Market Analysis by Mr. Ajit Mishra – SVP, Research, Religare Broking Ltd.

Markets gained nearly 1% last week, marking the second consecutive week of advances amid mixed cues. The week started on a strong note, supported by favorable state election results, but fluctuations in heavyweight stocks limited the upside. Ultimately, Nifty and Sensex closed at 24,131.1 and 79,802.79, respectively. Sectoral performance was broad-based, with energy, metals, and banking leading the charge, while midcap and smallcap indices outperformed with gains of 2.5%-5.04%.

The upcoming week brings key data releases and events. Participants will first react to the GDP data released post-market on Friday. The primary focus will be on the RBI MPC’s monetary policy review, where policymakers' interpretation of the GDP data and their stance on the rate trajectory will be crucial. Additionally, high-frequency indicators such as auto and cement sales, along with HSBC Manufacturing and Services PMI data, are expected to provide further market direction. Foreign inflows will also remain in focus as a major driver of sentiment.

On the technical front, Nifty continues to face stiff resistance near 24,350, which coincides with the 100 DEMA. A decisive break above this level is needed for a directional move. Until then, consolidation within the 23,550-24,350 range is likely, with the 23,550-23,800 zone acting as a strong support.

Among sectors, IT and banking will be key in shaping market direction, given their influence and relatively stable performance. While other sectors are still in the early recovery stages, stock-specific opportunities are emerging across the board. Traders are advised to focus on identifying stocks with strong relative strength and adopt a selective approach to capitalize on these opportunities.

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