IGI Logo

Below the Weekly Note by Mr. Ajit Mishra, SVP - Technical Research, Religare Broking Ltd

It was a long and volatile week but markets managed to reclaim their record high, in continuation to the prevailing trend. The tone was downbeat in the initial sessions however a sharp recovery in the final trades completely changed the bias. Consequently, both the benchmark indices, Nifty and Sensex, settled around the week’s high at 22,378.40 and 73,806.10 respectively. The majority of key sectors participated in the move wherein metal, auto and banking were among the top gainers while IT and pharma traded subdued. Meanwhile, the broader indices underperformed for yet another week and ended on a flat note.

In the absence of any major event, participants will continue to take cues from the global indices. While the US markets have been inching gradually higher with every passing week, the tech-heavy index, Nasdaq Composite, has finally reclaimed its record high after over two years and that may provide the needed trigger for an up move in IT counters here also.

On the domestic front, we are now eyeing 22,800 in Nifty and expect banking, metal and IT to lead the surge. Traders should align their positions accordingly, with a focus on stock selection. In case of any intermediate dip, the 21,900-22,150 zone would cap the downside in the index. Amid all positivity, the price action in the broader indices shows indecisiveness thus traders should maintain extra caution in midcap and smallcap space and maintain strict stops in the existing positions.

Above views are of the author and not of the website kindly read disclaimer