Week Ahead....

The benchmark indices ended at a record closing high. The BSE rallied 1,739 points or 2.8 percent to 64,719, and the Nifty50 jumped 524 points or 2.8 percent to 19,189 during the week, taking monthly gains to around 3.5 percent.

The Nifty Midcap 100 and Smallcap 100 indices gained 2.7 percent and 2 percent in a week, taking June month rally to 6 percent and 6.6 percent respectively.

The market in the coming week will first react to June auto sales numbers announced over the weekend and further updates related to the HDFC-HDFC Bank merger effective from July 1. Overall, the markets may remain buoyant in the coming week too, but small correction or consolidation given a healthy run can't be ruled out intermittently, with the focus gradually shifting to June FY24 quarter earnings expectations.

Technically Nifty50 has formed a bullish candlestick pattern on the daily as well as weekly charts, making higher tops for the 14th consecutive week, while on the monthly timeframe, it seems to have formed a Three White Soldiers kind of pattern formation after Doji formation in March.

The index has seen a breakout of upward sloping resistance trendline adjoining the previous two record highs (October 2021 and December 2022), with momentum indicator RSI (relative strength index) giving a bullish crossover on daily, weekly, and monthly timeframes, which is a positive sign. Hence, 19,500 on the higher side and 19,000-18,800 on the lower side are expected to be key levels to watch.

The weekly Options data indicated that the immediate trading range for the Nifty50 could be 19,000 to 19,400 levels, while 18,800-19,500 can be the broader range.