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Below are Views On Weekly Market Analysis By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets ended 2-week long consolidation phase and settled around the week’s high. Weak global cues triggered a subdued start however buying in the select heavyweights prompted some recovery in the middle. It was the buoyancy in the IT pack on Friday, which helped the index to reclaim a record high. Consequently, both the benchmark indices, Nifty and Sensex, settled at 21,894.50 and 72,568.40 respectively. Meanwhile, the mixed trend continued on the sectoral front wherein IT, realty and energy were among the top performers while FMCG and banking ended lower. The broader indices also edged higher wherein the smallcap index gained over half a percent.

Apart from earnings, the performance of the US markets will remain in focus for cues. We have been seeing consolidation in the Dow Jones Industrial Average (DJIA), with bias on the positive side. A decisive breakout above 37,800 would prompt the next leg of up move towards 39,000 levels and the support has shifted to the 36,900-37,300 zone.

On the domestic front, Nifty has reclaimed its record high and looks set to test 22,150 and then 22,500 however pace of rise could be gradual due to the prevailing underperformance of banking. In case of any profit taking, the 21,150-21,500 zone would continue to act as strong support. Meanwhile, we thus suggest focusing on other key sectors for stock selection. And, since the choppiness remains high during the earnings, risk management plays a critical role irrespective of the market trend and traders should plan their trades accordingly.

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