BLOG
Broader market outperformance to get amplified, eyes set on Fed meet outcome!
The fag end buying demand helped index to recover lost ground and settled the week on a positive note at 24750, up 0.3% amid expectation of US Fed rate cut. In the process, small cap index recorded fresh All Time High
What to expect: Despite elevated volatility Nifty managed to hold last week's low of 24000 and staged a strong rebound. We maintain our positive stance and expect Nifty to resolve higher towards 25200 while unfolding Santa rally. Hence, focus should be on accumulating quality stock on dips as support base is now revised upward at 24200
Heavy weight sectors to drive next leg of up move: Nifty IT endured its record setting spree over second consecutive week while Bank Nifty bounced after retesting two-month range breakout area. Cumulatively both sector carries 50% weightage in Nifty
Broader market in focus: Ratio chart of Nifty 500 / Nifty 100 recorded breakout from 6 months consolidation, suggesting broader market to outperform going ahead.
Structure: Elongation of rallies followed by slower pace of retracement amid improving market breadth indicates robust price structure. Buying on dips would be the prudent strategy to adopt
Key Monitorable for next week:
- US Federal meet outcome
- Dollar index is heading towards key resistance of 108
On the sectoral front, we remain positive on BFSI, IT, PSU, Capital Goods & Infra while Defense, Consumer Discretionary offers bargain buy opportunity
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
Related content
Blogs
Articles - Stocks
Advantages and Disadvantages of NPS
It is a long established fact that a reader will be distracted by the readable content of a page when looking at it...
Articles - Stocks
Advantages and Disadvantages of NPS
It is a long established fact that a reader will be distracted by the readable content of a page when looking at it...
Articles - Stocks
Advantages and Disadvantages of NPS
It is a long established fact that a reader will be distracted by the readable content of a page when looking at it...
Video
Video - Stocks
What is Book Value?
Book Value Explained – Find out what is book value in stocks in this video by ICICIdirect.com.
Video - Stocks
What is Book Value?
Book Value Explained – Find out what is book value in stocks in this video by ICICIdirect.com.
Video - Stocks
What is Book Value?
Book Value Explained – Find out what is book value in stocks in this video by ICICIdirect.com.