By Ajit Mishra
Markets concluded a two-week consolidation phase by gaining over 2%, continuing the prevailing uptrend. The tone remained positive throughout the week, driven by rotational buying in index heavyweights across sectors. As a result, the Nifty reached a new milestone of 24,000, while the Sensex crossed the 79,000 mark, settling finally at 24,010.60 and 79,032.73 respectively.
Energy, IT, and financial sectors led the gains among key sectoral indices, while realty and metal sectors experienced declines. Broader indices maintained a range-bound movement, closing with modest gains.
As the new month begins, market participants will closely watch auto sales data to start with. Besides, the progress of the monsoon will also be in focus. Global cues, especially from the US, indicate a supportive outlook, with major indices continuing their upward trend despite intermittent consolidation.
Rotational buying across key sectors is driving the current uptrend, with expectations that Nifty will hold the 23,400-23,700 zone in case of profit-taking, while eyeing levels above 24,500.
ITand FMCG sectors are expected to play pivotal roles alongside banking in maintaining a positive sentiment. Selective participation from heavyweight stocks in other sectors is likely to support the upward movement.
The consolidation phase in broader indices is expected to conclude soon, although participation may be limited to quality names. Traders are advised to continue with a “buy on dips” strategy, focusing on careful stock selection.
(About The Author: Ajit Mishra is the Senior Vice President of Research at Religare Broking.)
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