Markets finish 2023 on a high, eyes on global cues for 2024 kickoff – CaFE Invest News
By Ajit Mishra
Markets resumed the uptrend after a marginal breather and ended the last week of the calendar year with ~2% gains. The tone was positive from the beginning and favorable global cues combined with rotational buying across sectors pushed the index higher as the week progressed.
Consequently, both the benchmark indices, Nifty
The broader indices also witnessed selective buying and managed to gain nearly 2% each. The next week marks the beginning of the new calendar year 2024 and the performance of global indices will remain in focus for cues.
Apart from a steady performance from the US markets, we are seeing participation from other world indices also. We are eyeing a new milestone of “39,000” in the Dow Jones Industrial Average (DJIA) and expect the 36,500-37,100 zone to act as a cushion in case of any dip.
We may see some consolidation in Nifty in initial sessions next week, after gaining ~8% in December. However, it has the potential to inch gradually towards the 22,150 zone next so traders should use the consolidation phase to add quality names on dips. On the downside, we expect Nifty to hold the 21,150-21,500 zone.
All sectors are contributing to up move on a rotational basis so maintain focus on stock selection and prefer counters that are attracting consistent interest. Besides, certain themes like chemicals, paint and fertiliser, etc are also gaining noticeable traction so plan your trades accordingly.
(Ajit Mishra, SVP- Technical Research, Religare Broking. Views expressed are author’s own. Please consult your financial advisor before investing.)