Week Ending 5th January 2024

Dear patrons, first of all let me wish you a very happy and profitable 2024. Previous year has been great for wealth creation in the Indian markets and we expect this trend to continue with India remaining the fastest growing big economy in the world.

Last week most of the global markets has a truncated week on account of new year. Action was muted as festivities took over. Indian markets also remained in a range amid volatility. We had predicted in the last blog that Nifty should find support around 21500. During the fall in fist half of the week Nifty did touch 21500 and moved up. You may read it here (Weekly Market Update: Week Ending 29th December 2023 (amitbajare.blogspot.com),

India's GDP growth has been revised upwards to 7.3% from 7% previously. Manufacturing activity is expected to contribute handsomely to this growth which should propel the markets further in due course of time.

Let us look at what lies in store for the coming week.

As expected Nifty spent the last week in a range after a sharp up move last month. We expect the Nifty to spend some more time in consolidation mode before moving up again. A corrective move towards 21000 can not be ruled out. In fact, it would be very healthy for the markets to undergo some correction. Action should now shift from indices to stocks. Stock specific moves would be the flavor for next couple of weeks.

BankNifty has been moving in a larger range compared to Nifty. Move above 48300 should add to strength of BankNifty for a move towards 49000. Close below 47700 may take it towards 47400.

Traders should focus on stock specific moves rather than index, remain nimble footed and look to book profits on regular basis.

Happy Investing!!!

“The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.”

Benjamin Graham

P.S.: This communication is for educational purpose only and does not recommend buying or selling any stock or index. Trade at your own risk.