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Below is the Weekly Market Quote December 16 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets extended gains for the seventh consecutive week and gained nearly two and a half percent. The tone was sideways in the benchmarks for most of the week however they resumed uptrend in the final sessions, thanks to upbeat global cues. Consequently, both the key indices, Nifty and Sensex, settled around the week’s high at 21,456.60 and 71,483.70 respectively. All sectors participated in the move and ended in the green wherein a sharp surge in the IT majors was the key highlight.The broader indices also edged higher and gained in the range of 2.7%-3.3%.

Apart from favorable domestic cues, a steady upmove in the US markets has been a playing a catalyst in maintaining the prevailing trend. The key index, the Dow Jones Industrial Average (DJIA),has reclaimed its record high after two years and we expect the tone to continue. It can gradually inch towards a new milestone of “39,000” and is likely to find support around the 36,300-36,600 zone in case of any dip.

The rotational buying across the key sectors has been pushing the index higher with marginal correction in between. And, all indications are in the favor of ongoing trend continuing and we expect the Nifty to inch towards 22,150 levels. Traders should continue with the “buy on dips” approach, with the support zone now around 20,700-21,000 levels. A sharp up move in the IT and banking heavyweights has strengthened our favorable view while others are also contributing on a rotational basis. Traders should align their trades accordingly and stay selective in midcap and smallcap space.

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