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

Markets edged higher for the second consecutive week, moving closer to record highs, supported by favorable cues. Although the overall sentiment was positive from the start, mixed trends among the heavyweights limited the gains. Ultimately, both the Nifty and Sensex ended near the week's highs, at 24,823.10 and 81,086.20 levels, respectively. All major sectors, except for real estate, participated in the rally, with metals, FMCG, and financial services leading the gains. The broader indices also saw significant participation, with both midcap and smallcap indices reaching new record highs.

With no major events on the domestic front, attention will remain on global markets for direction. Market participants will first respond to the dovish remarks by the US Fed Chair at the Jackson Hole symposium. After a period of consolidation, US markets resumed their upward movement on Friday and seem poised to test record highs soon. Additionally, a weakening dollar and falling crude oil prices are added positive for our markets. Domestically, investors will keep an eye on economic data releases, including GDP figures and infrastructure output.

Given the favorable global environment, we expect the Nifty to overcome the resistance at 24,850 and aim for new record highs soon. However, sustained participation from the banking sector is needed to drive momentum and push towards the 25,500 level; otherwise, the upward move may be gradual. Traders should continue to adopt a "buy on dips" strategy unless the Nifty decisively falls below the 24,500 level. Besides banking, sectors like FMCG, auto, pharma, and selected metals appear promising, so trades should be aligned accordingly. Additionally, selective opportunities in the midcap and smallcap space can also be considered.

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