Week Ahead

Nifty50 index surged 245 points during the week to close at 18,314.80, while the BSE-Sensex gained 973 points to end at 62,027. The Nifty Midcap 100 rose close to a percent while Nifty Smallcap 100 gained 0.8 percent.

Within sectors, the Nifty Auto (up 4.2 percent) and Nifty Bank (up 2.7 percent) were the top gainers, while Metal (down 2 percent) and Pharma (down 1 percent) led the losers. The fall in the metal index was largely because of economic data from China suggesting slow growth in the country.

In the week ahead, it will be crucial to see if the Nifty can sustain the 18,300 mark as the earnings season enters its fifth week.

Over 500 companies are set to announce their quarterly numbers in the week ending May 21.

Among the large-cap names, ITC, State Bank of India, Bharti Airtel, Indian Oil, Jindal Steel and Power, Power Grid, JSW Steel, NTPC and Bank of Baroda will be in focus.

Tata Elxsi, Jubilant Foodworks, PVR Inox, JK Paper, Quess Corp, Teamlease Services, Motherson Sumi Wiring, Crompton Greaves Consumer Electricals and Zomato are some other companies that will be key to track.

Technically Nifty50 has formed bullish candlestick pattern on the weekly charts after a Shooting Star kind of indecisive pattern formation in previous week, as the index closed at the highest level since first week of December last year.

It has maintained higher highs formation for seventh consecutive week, with momentum indicators RSI (relative strength index) having bullish bias and MACD (moving average convergence divergence) giving a positive crossover above zero line.

Hence, we feel the Nifty50 can touch 18,400-18,500 levels in coming days and holding of these levels can drive the index towards 18,600-18,700 area, with support at 18,200 and crucial support at 18,000 mark.