Week Ahead

During the week, the Nifty50 climbed more than 200 points, or 1 percent, to 18,350, the highest closing level since October 19, led by buying in banking & financial services, technology, and metal stocks.

The BSE Sensex moved closer to the 62,000 level, rising 845 points to 61,795, but the broader markets had a dismal performance as the Nifty Midcap 100 index fell 1 percent and the Smallcap 100 index declined half a percent.

However, if global markets provide healthy support, then the leading indices may touch record highs, on the back of strong performance by IT and bank stocks. But subsequent to a strong rally, some consolidation can't be ruled out in the coming week.

Technically, the charts seem to be looking better now as the Nifty50 has formed a bullish candle on the daily, weekly, as well as monthly time frames, trading far above all important moving averages. Even the momentum indicators, the MACD and the RSI reflected a positive mood.

Hence, after touching a high of 18,350, the Nifty50 seems set to march towards a record high provided it holds 18,300 as well as 18,000 levels in the coming sessions.

Options data suggests a broader trading range between 17,900 to 18,700 zones, and an immediate trading range between 18,100 to 18,600 levels.