By Ajit Mishra
Markets resumed the uptrend after a marginal breather and ended the last week of the calendar year with ~2% gains. The tone was positive from the beginning and favorable global cues combined with rotational buying across sectors pushed the index higher as the week progressed.
Consequently, both the benchmark indices, Nifty and Sensex settled closer to their record highs at 21,731.40 and 72,240.26 respectively. Most sectors were aligned with the benchmark trend wherein auto, metal, FMCG and pharma posted strong gains.
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The broader indices also witnessed selective buying and managed to gain nearly 2% each. The next week marks the beginning of the new calendar year 2024 and the performance of global indices will remain in focus for cues.
Will Nifty reclaim 24,900 on Thursday? See GIFT Nifty, FII data, F&O, crude, and more before market opens Will Nifty hold 24,000 on Wednesday or fall further? See GIFT Nifty, FII data, F&O, crude, and more before market opens Will Nifty fall on Monday as Hindenburg levels allegations on SEBI Chair? See GIFT Nifty, FII data, F&O, crude, and more before market opens Will Nifty surpass 25,000 on Thursday? See GIFT Nifty, FII data, F&O, crude, and more before market opens
Apart from a steady performance from the US markets, we are seeing participation from other world indices also. We are eyeing a new milestone of “39,000” in the Dow Jones Industrial Average (DJIA) and expect the 36,500-37,100 zone to act as a cushion in case of any dip.
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We may see some consolidation in Nifty in initial sessions next week, after gaining ~8% in December. However, it has the potential to inch gradually towards the 22,150 zone next so traders should use the consolidation phase to add quality names on dips. On the downside, we expect Nifty to hold the 21,150-21,500 zone.
All sectors are contributing to up move on a rotational basis so maintain focus on stock selection and prefer counters that are attracting consistent interest. Besides, certain themes like chemicals, paint and fertiliser, etc are also gaining noticeable traction so plan your trades accordingly.
(Ajit Mishra, SVP- Technical Research, Religare Broking. Views expressed are author’s own. Please consult your financial advisor before investing.)
