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

The markets exhibited volatility over the past week, ultimately closing marginally lower amid mixed signals. After a subdued start, the Nifty index remained range-bound for most of the week. However, selective buying in key heavyweights across sectors kept the sentiment positive. Nevertheless, weak global cues led to profit-taking on Friday, pushing the index lower. During the week, the Nifty briefly surpassed the 25,000 mark but eventually settled near the week's low at 24,717 levels. A mixed trend in sectoral performance kept traders engaged, with energy and pharma edging higher, while realty and IT were among the top losers. The broader indices also traded lackluster, ending with marginal declines.

In addition to the ongoing earnings season, participants will be closely monitoring the outcome of the MPC's monetary policy review meeting on August 8 for further guidance. Additionally, the performance of the US markets following the recent sell-off will be closely watched.

Currently, weak global cues are weighing on sentiment, which could lead to further declines. A potential retest of the short-term moving average, the 20 DEMA, in the Nifty, which is currently around the 24,550 level, is possible. A decisive break of this level could place bulls on the back foot, with the next support at the 24,200 level. On the higher side, 25,100 will continue to act as a strong resistance. While various key sectors have contributed to the recent surge, the performance of the banking index will be crucial for any significant recovery. We recommend continuing a stock-specific trading approach amid mixed signals, with a focus on overnight risk management.

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