Week Ahead

The BSE Sensex fell more than 500 points to 66,160, while the Nifty50 declined nearly 100 points to 19,646 after a rally of 1,300 points in the previous four weeks. However, the broader markets outperformed the frontliners, as the Nifty Midcap 100 and Smallcap 100 indices gained 1.5 percent and 0.6 percent.

We expect sectoral rotation in the market, while the index is likely to remain in the consolidation zone with the ongoing result season.

The market would keep an eye on the manufacturing data to be released next week - both globally as well as locally.

We will enter the second half of corporate earnings season and more than 350 companies will release their June FY24 quarter numbers next week. The prominent names among them to focus on would be State Bank of India, Maruti Suzuki, GAIL, Power Grid, UPL, Titan Company, Adani Enterprises, Bharti Airtel, Eicher Motors, Sun Pharma, and Mahindra & Mahindra.

Technically Nifty50 is likely to consolidate with crucial support and resistance at 19,500-20,000 levels in coming days, as breaking of the same on either side can give direction to the index.

We still believe the overall market sentiment remains bullish, with a prevailing "buy on dip" strategy to continue.

We expect any fall close to 19,500-19,450 can be seen as an opportunity to build fresh long positions for 19,870 and then 20,000..

The option data clearly indicates that the Nifty may take support at 19,600-19,500 area, whereas 19,700-19,800 is likely to be near term resistance, which is expected to be crucial for move towards 20,000.