Week Ahead...

After a flattish start, the benchmarks oscillated in a narrow range for most of the week but a strong close in the final session helped the index end higher. Consequently, the benchmark indices, Nifty and Sensex, managed to gain over a percent each to close at 19,564.50 and 66,060.90 points.

A sharp surge in the IT pack was the key highlight on the sectoral front and metal, realty and pharma also posted decent gains, though underperformance of banking stocks capped the rally. Buying continued in the midcap and smallcap space with both the indices edging higher in the range of 1.25-1.85 percent.

The earnings season will gather pace in the coming week and become the single largest factor in stock movement. The major announcements scheduled for the next week include CRISIL, LTI Mindtree, HDFC Bank, Tata Elxsi, IndusInd Bank, ICICI Prudential, Tata Communications, CanFin Homes, HUL, Infosys and Mphasis.

Technically as Nify has ended a week-long consolidation phase, it now looks set to test 19,750 and eventually march toward a new milestone of 20,000. In case of a decline, 19,100-19,300 would provide the cushion. Participants should align their positions accordingly while maintaining their focus on stock selection and risk management.

Option data clearly indicates that 20,000 can be a possibility for the Nifty in coming weeks, but in near term, 19,600-19,700 can act as a resistance area, while the 19,500-19,300 is expected to be support area.