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Below is the Weekly Market Quote November 25 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets consolidated in a narrow range and ended marginally higher, taking a breather after the recent surge. After the muted start, the benchmarks tried to regain strength in the following sessions but mixed signals from the global front and divergence among the heavyweights capped the move. Eventually, both the benchmark indices, Nifty and Sensex, managed to end in the green and settled at 19,794.70 and 65,970.00 respectively. Among the key sectoral indices, metal, energy and realty attracted noticeable interest while IT and FMCG were on the back foot.  The broader indices traded in sync wherein the midcap index gained over half a percent while smallcap ended in the red.

The coming week is a holiday-shortened one and we expect volatility to remain high due to the scheduled expiry of November month derivatives contracts. Apart from domestic factors, we are closely eyeing the performance of the US markets for cues and indications are in favor of the prevailing up move to continue. We are expecting the Dow Jones Industrial Average (DJIA) to inch toward the previous swing high i.e. 35,679 and the 34,800-35,000 zone would restrict the decline in case of any profit taking.

We have been seeing time-wise correction in the Nifty and eyeing a possible breakout above 19,850 next week, which would help the index to inch towards a newer high. On the downside, we expect the 19,350-19,550 zone to offer support if profit taking deepens. Though the banking index is also trying to recover its lost ground, we suggest focusing on the other sectors for long trades until it decisively reclaims the 44,100 mark. We may see a marginal fall in the broader indices too but the tone is likely to remain positive so traders can utilize the dip to selectively add quality names from the midcap and smallcap basket too.

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