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

The markets experienced volatility throughout the week, ultimately ending nearly unchanged amid conflicting signals. While the overall sentiment was positive initially, fluctuations in global markets coupled with declines in certain major stocks offset much of the gains. Despite this, the Nifty managed to reach a new record high of 22,794.70 before settling at 22,475.80. Sector-wise, financials, auto, and energy saw gains, but broader indices closed with slight losses, taking a pause after recent gains.

Looking ahead to the next week, attention will be on earnings reports and global market performance, particularly in the US. The Dow Jones Industrial Average has seen significant volatility over the past month, recently surpassing the previous swing high of 38,700, though sustainability remains uncertain.

Pressure persists around record high levels for the Nifty, with a close below 22,400 potentially leading to further declines toward the 22,200-21,850 range. The sharp increase in the India VIX volatility index suggests caution despite the ongoing uptrend. Resistance is expected in the 22,750-22,900 zone in case of further upward movement. While most sectors are contributing positively except for IT, banking performance is likely to heavily influence market sentiment. It's advisable to consider hedged positions and await clearer signals before making significant moves.

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