Weekly market trends: Sectors in focus & outlook

Global markets were mixed last week, while Indian markets showed resilience despite bad job data and unchanged RBI rates. During the earnings season, FMCG stocks rallied steadily, and the Pharma sector saw significant gains. The Nifty index remain...

By Neha Vashishth, ETMarkets.com | Aug 17, 2024, 01.08 PM IST

The past week was mixed for global markets but Indian markets showed resilience, however, markets are in a range-bound phase, says Kranthi Bathini, Equity Strategist at Wealthmills Securities. Here is a look at the market outlook for next week.

Excerpts:

Market Overview:

Choppy Markets: The past week saw volatile market conditions.
Jobs Data: Negative job data was reported, but Indian markets displayed resilience.
Monetary Policy: The RBI MPC maintained rates with no changes, and the US is anticipated to consider a rate cut, likely in September.
Market Behavior: A V-shaped recovery pattern is evident, with sharp declines followed by equally sharp recoveries, indicating strong liquidity and buying interest. This suggests opportunities during short declines, and overall, markets are in a range-bound phase.

Sector Focus (Earnings Season):

FMCG Sector: Stocks have been steadily rallying.
Pharma Sector: The pharma index has seen a 40% increase this year, making relative valuations attractive.
Stock-Specific Market: Moving forward, the market is likely to be stock-specific. Adding on dips could be a favorable strategy.

Key Levels to Watch (Nifty):

Downside: 24,250
Upside Resistance: 24,750

Market Trend: The market appears to be in a range-bound territory with some consolidation. As long as Nifty remains above 24,000, the overall trend remains positive.

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