Week Ahead

The week gone by was a stellar one for the Indian markets as Nifty 50 and Sensex managed to record highest closing level on June 16. The Nifty advanced 1.4 percent and the Sensex gained 1.2 percent in the week.

Broader markets also participated in the rally with Nifty Midcap 100 rallying 2.9 percent and Nifty Smallcap 100 up 2.8 percent. While the midcap index is at its record high level, the smallcap index is still about 11 percent away.

Foreign institutional investors bought shares worth Rs 6,644 crore in the week gone by. Meanwhile, Domestic institutional investors bought shares worth Rs 1,320 crore. In June so far, FII net buy stands at Rs 6,886 crore and DII net buy stands at Rs 4,329 crore.

At present there are no cues for the Markets either ro go up or go down. So it will all be technicals.

Technically speaking double-top formation is currently taking shape on Nifty's weekly chart.

However, despite this formation, the ongoing strength in the market suggests that there is a possibility of invalidating the resistance zone, which is expected to be in the range of 18,887-18,900.

The lower high formation in Relative Strength Index (RSI), a momentum indicator, needs to be monitored especially when the index is at a touching distance from its all-time high.

Options data indicates that 18,800 is expected to be crucial for further upside towards the 19,000 mark, while 18,700 is likely to act as immediate support for the index and 18,500 is going to be critical support.