Last week – review
Going into trade into last trading week, we expected market to test its recent high and close at higher level due to year end rally. Most indices closed at highest level with week gains of around. Indices on Monthly basis has rallied more than 7% on major indices while Mid-cap & Small-cap gained just under 7%.
Global market closed flat on weekly basis as market was in holiday mood and low volatility.Now let us looks at year change for all these major indices. Nifty 50 & SENSEX30 gained around 20% while Banknifty underperformed among indices by growth of up to 12.34%.
Highlight will be Mid-cap 100 & Small-cap100 indices which gained by 46.57% and 55.62% respectively. After underperforming in 2022 and early part of 2023, 2nd half of calendar year 2023 delivered one of the best returns in recent times.
Equichain Wealth Advisors: Market View & Strategy
This week we will not focus on technical because the movement we have seen in last two weeks was mainly due to year-end rally. We would now focus on fresh indication from technical trend.
We see year-end rally to cool-off in first week and then corporate earnings will take lead from here on. We remain optimistic on IT and Banking stocks going into earnings season as improvement in global sentiment will play important role, even if result may be weak but we expect positive commentary from IT companies. Globally expectation of interest rate to cool-off has provided big boost for banking and financials company. Any correction in first few weeks can be seen as opportunity to deploy fund available.
As mentioned in our earlier we have remained invested around 70% in trading portfolio and 80% in positional portfolio. Rally in last week was used to book part profit for short term trades and fresh review will be taken with view on corporate earnings, Vote on account (mini budget before general election on 1-Feb-24) and potential reversal in interest rate globally.