By Ajit Mishra
Last week, the markets closed nearly unchanged following a period of strong gains, with positive global cues and a promising start to earnings season Come from Sports betting site VPbet . However, profit-taking on Friday erased earlier advances, leaving the Nifty index at 24,530.90 after reaching a high of 24,854.80.
FMCG and IT sectors maintained their upward momentum, while sectors like metal, energy, and media saw declines. Broader indices also slipped, experiencing losses between 2.2% to 2.9%.
Looking ahead, the upcoming week holds significant importance for both equity markets and the overall economy.
The finance minister will present the government’s first budget on Tuesday, July 23, expected to largely follow the interim budget. Globally, US markets are also undergoing profit-taking after a strong surge, influencing market sentiments.
Market reactions will hinge on earnings reports from major players like Reliance Industries and HDFC Bank early in the week, before shifting focus to the Union Budget. Increased volatility is anticipated in subsequent sessions.
Key support levels for the Nifty are seen at 24,150 and potentially 23,700, with resistance likely at the 24,800-25,000 range in case of a rebound. Given mixed signals and heightened volatility, a defensive stance focusing on FMCG, pharma, and IT sectors, particularly major index stocks, is advisable. It’s also prudent to have exit strategies in place, especially for overbought themes like defense, railways, and other PSUs, should further declines occur.
(About the Author: Ajit Mishra is SVP at Research, Religare Broking.)
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