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Week Ahead....

The benchmark indices remained under pressure amid volatility for the third consecutive week ending October 18, hitting multi-week lows, as consistent FII selling, muted quarterly earnings, and weak festival-season demand in the auto sector weighed on sentiment.

The BSE Sensex declined 0.2 percent during the week to 81,225, and the Nifty 50 fell 0.44 percent to 24,854, the lowest closing level since the first week of September. In the broader markets, there was mixed action, with the Nifty Midcap 100 index falling nearly a percent, and the Smallcap 100 index rising 0.4 percent. Auto, FMCG, metals, pharma, oil & gas, and select tech stocks were under pressure.

In the coming week, the market is expected to remain in consolidation mode with continued stock-specific action due to the ongoing September quarter earnings season, but there may be support from the banking and financial space, the outperformer of last week. Geopolitical tension and movement in gold prices ahead of US elections may also impact the markets.

The Nifty 50 is likely to be volatile with crucial support at 24,500-24,550, which somewhat coincides with its 20-week EMA (Exponential Moving Average), and may see resistance at the 25,000-25,200 mark (the high of last week). The index needs to hold on to its 20-week EMA support on a closing basis for stability, as decisively breaking this level can open the doors for the lows of August.

The weekly options data suggests that the 24,500 mark may provide key support next week, while resistance lies at 25,000.