Week Ahead

BSE Sensex jumped 598 points to 60,431, and the Nifty50 rose 229 points to 17,828, while the broader markets have seen outperformance compared to benchmarks as the Nifty Midcap 100 and Smallcap 100 indices gained 1.75 percent and 1.5 percent respectively for the week ended April 13.

All sectoral indices, barring IT, supported the market.

Now coming to next week, the market will first react to Infosys and HDFC Bank quarterly earnings announced over the long weekend. Overall, the market is expected to be rangebound after a recent sharp uptrend and look for cues from corporate earnings.

Domestic macro data continues to remain positive and support the uptrend. Weak numbers from TCS and Infosys would keep the technology sector under pressure.

Technically Nifty50 has formed a bullish candlestick pattern on the weekly scale for the third consecutive week. The index sustained above 50-week EMA and has seen a decisive breakout of a downward sloping resistance trendline, at 17,600, adjoining highs of December (record high), and February, with momentum indicator RSI maintaining a positive crossover for yet another week.

Hence as long as the index sustains above the resistance trendline, the uptrend may continue towards the 18,000-18,200 area with intermittent correction and consolidation, whereas the 17,500 and 17,300 are expected to act as crucial support levels.