Weekly Note : Eventually, both the benchmark indices, Nifty and Sensex, settled closer to the week`s high at 19,425.30 and 64,904.60 respectively Say`s Ajit Mishra, Religare Broking
Below the Weekly Note by Mr. Ajit Mishra, SVP - Technical Research, Religare Broking Ltd.
Markets consolidated in a narrow range but managed to gain a percent. The beginning was upbeat as the benchmarks opened with an upside gap but muted global cues capped the movement thereafter. Eventually, both the benchmark indices, Nifty and Sensex, settled closer to the week’s high at 19,425.30 and 64,904.60 respectively. Among the key sectors, the majority edged higher wherein pharma, realty and metal were among the top gainers. Interestingly, the broader indices outperformed the benchmark and gained 3% each.
The coming week is a holiday-shortened one and the performance of the global indices, especially the US markets, will be on participants’ radar for cues. The Dow Jones Industrial Average (DJIA) spent the entire week in a range but finally surpassed the hurdle of 34,200 on Friday. Now, sustainability above that zone could trigger the next leg of recovery, which may help in ending the consolidation in our markets.
We reiterate a positive view on Nifty until it holds 19,200 and suggests focusing on stock selection. A decisive break above 19,500 would trigger the next leg of up move towards 19,850 levels. While all sectors are witnessing rotational buying, we feel the contribution of banking would be critical for momentum else the rise could be gradual.
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