Week Ahead

After briefly scaling past the 18,400 mark in the week ended May 19, the benchmark Nifty 50 closed 0.6 percent lower at 18,203. The Sensex declined 0.48 percent to 61,729.

We got good news on the domestic economy front. India's Wholesale Price Index (WPI) inflation for April fell 0.92 percent, turning negative for the first time since July 2020. But, that was not enough to support the sentiment for the Nifty above 18,400.

Moving on to some key domestic data points, the Q4 earnings season will enter its seventh week and over 1150 companies are set to announce their numbers.

Major companies like BPCL, Ashok Leyland, NMDC, Hindalco, Oil India, LIC, National Aluminium Co, Zee Entertainment, Vodafone Idea, BHEL, Info Edge, ONGC and Sun Pharma will be declaring their results in the coming week.

Shree Cement, PB Fintech, Aditya Birla Fashion and Retail, Page Industries, IRFC, Nykaa, Biocon, Fortis Healthcare, Dixon Technologies, Amara Raja Batteries are some other key names to monitor.

We believe the Nifty needs to move above 18,350-18,460 with full conviction to extend the bullish journey for 18,750-18,880. On the downside, 18,000-17,900 will act as immediate support.

The Option data indicated that 18,200 is likely to be crucial level in the week of monthly F&O contracts expiry, as if the index sustains the same then possible upmove towards 18,300-18,500 is expected, with crucial support at 18,000.