Last week – review
Market started this week with cues from RELIANCE, KOTAKBANK & ICICBANK result. Technical setup does indicate some pause and market this week after brief consolidation have seen correction. Market corrected on Thursday & Friday making indices to close with minor loss on weekly basis.
Technical Insight
• Nifty rally from 18646 to 19991, retracement @ 38.2% comes @ 19478 & 61.8% comes at 19160. Nifty below 19478 could test 19160 level and Nifty above 19861 could resume fresh uptrend.
• Banknifty rally from 43541 to 46256, retracement @ 38.2% at 45219 was tested on Friday, further correction could test 44578. Banknifty above 45841 could resume positive trend.
Approach on Technical: Indices after all most 16% -18% rally in last 3 – 4 months is showing some sign of weakness on charts. Indices have witness sideways consolidation during this rally and we may continue to see that trend.
Nifty @ 19478 & Banknifty @ 45219 are 38.2% retracement level of their recent rally. Any weakness could trigger correction up to 61.8% retracement level on Nifty @ 19160 & Banknifty @ 44578. We assume that uptrend will resume once Nifty @ 19841 & Banknifty @ 45927 is crossed.
Fundamental Insight
1) India GDP To Grow 6-6.3% In FY24, Economic Prospects Brighten: Deloitte India
2) Surging India Prices May Keep RBI on Extended Pause, IMA Says
3) IMF Raises India’s GDP Forecast To 6.1% For FY24
Equichain Wealth Advisors: Market View & Strategy
During the last few weeks, we have maintained our strategy to participate in this rally with keeping exposure around 70% to 85% and some allocation towards defensives. We would prefer stock rotation while keeping exposure at same level and we continue to maintain our strategy. This week we would focus on defense stocks, telecom & PSU where result is awaited. Any correction would provide fresh view on market to deploy fund available with us.
Buying keeping allocation at 70% – 85% in last few weeks, we have managed to perform in-line with index and any we would deploy fresh fund on correction as we believe market will continue to correct and have stock specific approach.