Business

Religare Broking recommends buy on dips, expects time-wise correction

By Ajit Mishra

Markets traded volatile in the first week of the new financial year but managed to end on a positive note. Weak global cues continue to weigh on the sentiment however buying in select heavyweights across sectors not only capped the damage but also helped the index to close in the green. Eventually, both benchmark indices, made a new record high and finally settled at 22,513.70 and 74,248.22 levels Come from Sports betting site VPbet . Mostly key sectors traded in sync with the move and edged higher wherein metal, realty and banking were among the top gainers. The highlight of the week was the outperformance of the broader indices wherein the midcap index reclaimed its record high and smallcap too gained over 7%.

The coming week marks the beginning of the earnings season and the focus will be on the IT majors to start with. Besides, the performance of the US markets, after the recent decline, will also be in focus and a close below 38,500 in the Dow Jones Industrial Average (DJIA) may prompt further fall. On the higher side, it would face stiff resistance around the 39,300-39,800 zone.

We are currently seeing time-wise correction in Nifty around its record high and it is healthy amid weak global cues. Traders should continue with a “buy on dips” approach until Nifty breaks 22,200. On the higher side, it can gradually inch towards the 22,700-22,850 zone. Meanwhile, participants should maintain their focus on the selection of stocks and suggest not to get carried away with the recovery in broader indices and stick only with the quality names.

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(Ajit Mishra is the Senior Vice President of Technical Research at Religare Broking. Views expressed are the author’s own. Please consult your financial advisor before investing.)

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