Week Ahead

Nifty managed to surpass the hurdle at 18,400 and settled around the week's high of 18,499.35, while the Sensex ended the week at 62,501.69. All sectors contributed to the recovery with metal, pharma and IT leading from the front.

Earnings announcements will continue to take centre stage next week, especially in the small and midcap segment with over 1,700 companies declaring their quarterly numbers. Auto sales data, GDP growth rate and PMI will be guiding the market movement from the macro perspective.

Nifty looks set for a new high after the consolidation breakout, thanks to improved participation from across sectors.

Though we are seeing broad-based buying, the focus should remain on identifying the leaders from the respective sectors instead of adding laggards in the hope of recovery.

Considering the consolidation breakout with significant rally on last Friday, the Nifty50 seems to be inching towards its next target of around 18,700 levels and clearing the same the door may open for record high of 18,887, with crucial support at 18,400-18,200 levels.

The weekly Option data indicates that 18,700-19,000 is expected to be crucial hurdles for the Nifty on higher side, with critical support area of 18,400-18,200.