Weekly market trends: Sectors in focus & outlook

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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