Nifty trend remains weak; move above 23,600 key for recovery: Ajit Mishra

Nifty's recovery above the 23,200 level provides some near-term relief; however, the broader structure remains weak.

Disclaimer: This article is written by Ajit Mishra, SVP, research, Religare Broking. Views expressed are his own. Readers' discretion is advised.

Markets staged a recovery on Wednesday following the recent sharp sell-off, gaining nearly half a percent and providing some respite from the prevailing weakness. The rebound was supported by buying in select heavyweight stocks; however, gains remained volatile amid elevated crude prices, global uncertainty and caution ahead of the US Federal Reserve’s policy decision.

The Nifty settled at 23,217.60, up 0.43 per cent, while the Sensex closed at 74,336.45, higher by around 0.45 per cent.

Sectoral participation remained mixed, with FMCG, realty and banking emerging as the key gainers, while IT and pharma ended in negative territory. The broader market continued to underperform and settled largely flat, with mid-cap and small-cap indices witnessing pressure amid profit booking in momentum-driven counters.