Stability from US brings some relief to domestic markets; traders eye earnings for cues, could see consolidation

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Key Points

The last three weeks of the rebound have brought in much-needed relief to the participants, after four months of the corrective phase..

On the sectoral front, we reiterate our preference for banking, financials, FMCG and auto and suggest picking selectively from others...

Amid all the positivity, we could see some consolidation in the index first, after the recent surge thus it is important to plan the trades, keeping in mind the key support and resistance zone..

The recovery has been swift in the banking index and we expect the prevailing tone to continue..

Considering the prevailing chart structure, we reiterate our preference for private banking majors and suggest staying selective in the PSU pack...

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