Weekly Note : Nifty and Sensex, settled around the week`s high at 19,230.60 and 64,080.90 respectively Says Ajit Mishra, Religare Broking
Below is the Weekly Market Note By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd
Market managed to recoup some of its lost ground and gained nearly a percent, after sliding for two weeks. After a positive start, Nifty edged lower in the middle however recovery in the US markets helped the index to regain some momentum in the final sessions. Consequently, both the benchmark indices, Nifty and Sensex, settled around the week’s high at 19,230.60 and 64,080.90 respectively. Majority of the sectors, barring auto, participated in the move wherein the realty index gained over 10%. The broader indices too showed resilience and rose over 2% each.
A sharp recovery in the US indices offered the needed respite however we need sustainability above the 34,150 mark in the Dow Jones Industrial Average (DJIA) to extend the recovery. On the other hand, a breakdown of 33,350 could again derail the momentum.
On the domestic front, Nifty managed to hold the support zone of long term moving average i.e. 200 EMA around 18,800 last week however it has reached closer to the resistance zone of multiple moving averages now. We need a decisive close above 19,500 to negate the bearish tone and inch towards 19,850 levels. On the downside, the 18,800-19,000 zone would offer support in case the decline resumes. Meanwhile, we suggest staying focused on stock selection and preferring sectors like energy, FMCG & realty for long trades.
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