Week Ahead....

The market recouped the previous week's losses to stage a strong performance in the week ended October 21, tracking positive global cues and healthy corporate earnings. Most sectors, barring metal, participated in the rally, with PSU bank leading the charge with a gain of 11 percent.

The broader market gained momentum but underperformed the benchmarks. Nifty midcap and smallcap indices rose half a percent and one-and-half-percent respectively.

Markets have managed to put on a good show, so far, amid the mixed global cues, however, we've been seeing restricted participation. It's banking, which is leading from the front, while others are playing a supportive role in between.

Volatile and rangebound trade with positive bias is likely to continue due to monthly derivative contracts expiry, with focus on corporate earnings and global cues.

Technically Nifty managed to hold the crucial 17,500 mark in the later part of the week amid consolidation, with the crucial support at 17,400-17,300. The index formed a small-bodied bearish candle on the daily charts and a long bullish candlestick for the week.

Rangebound trade is expected to continue in the coming sessions and if the index decisively takes out 17,600, 17,800-17,900 would be the next crucial resistance area.

Crucial supports to watch for resumption of weakness are at 17,520-17,421. Upside momentum will pick up if the Nifty crosses the immediate resistance of 17,670.

The options data indicated that the Nifty may trade in the range of 17,400-18,000 levels in the coming sessions.