By Ajit Mishra
The markets extended their positive momentum for the fourth consecutive week, gaining nearly half a percent amid consolidation. The benchmark indices remained in a tight range throughout most of the week but managed to close firmly on the final day despite significant volatility. Favorable macroeconomic data, including lower CPI inflation and improved Index of Industrial Production (IIP), boosted market sentiment. However, a mixed trend in Foreign Institutional Investor (FII) activity and profit-booking in global markets capped the upside. Eventually, the Nifty and Sensex settled at 24,768.30 and 82,133.12, respectively.
On the sectoral front, a mixed trend was observed, with IT and real estate emerging as the top gainers, while energy and FMCG sectors posted marginal losses. After weeks of outperformance, the broader indices also displayed a mixed trend, with the midcap index closing in the green while the smallcap index ended slightly lower.
Looking ahead to the coming week, participants will closely monitor the HSBC Composite PMI, HSBC Manufacturing PMI, and HSBC Services PMI. However, the key focus will be on the US Federal Reserve meeting, where a 25 basis point rate cut is already factored in. The Fed’s commentary on future rate policy will hold significant importance. Ahead the event, the Dow Jones Industrial Average (DJIA) has seen a notable correction, while the S&P 500 and Nasdaq Composite continue to hold their ground.
From a technical perspective, we reiterate that a decisive move above 24,800 on the Nifty could trigger further recovery toward the 25,200–25,500 zone. On the downside, the 24,300–24,400 zone is expected to provide strong support on a closing basis. We maintain a “buy on dips” strategy, focusing on selective stock picking, with a preference for IT and banking stocks, while other sectors contribute selectively. In the broader market, midcap and smallcap indices may witness some consolidation following their recent outperformance. Traders are advised to be selective and cautious while picking stocks in these segments.
(Disclaimer: Ajit Mishra is the Senior Vice President of Research at Religare Broking. Views, recommendations, opinions expressed are personal and do not reflect the official position or policy of Financial Express Online. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)
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