Week Ahead

Indian equity market logged its best week in the last two months, with the Nifty 50 and the Sensex rising 1.98 percent and 2.64 percent at the close on September 8.

The Nifty 50 managed to close beyond the crucial 19,800 mark at 19,819.95, while Sensex closed at 66,598.91.

Among sectoral indices, metal, realty and media led gains in the week gone by. Broader markets also continued their rally, with the Nifty Midcap 100 index gaining more than the Nifty.

Going ahead, as August inflation numbers trickle in, it is important to monitor if the market momentum can sustain.

The Ministry of Statistics and Programme Implementation will release the retail inflation data for August at 5.30pm on September 12.

Interestingly even as domestic equity markets posted solid gains last week, foreign institutional investors sold India equities worth Rs 9,300 crore.

Technically Nifty has broken out of a bullish flag formation, suggesting the potential for a significant upward move. However, it faces a critical psychological hurdle at the 20,000 mark.

If Nifty struggles to breach this level, there's a possibility of it forming a double top pattern around this point, which could trigger profit booking. On the downside, the range of 19,600–19,500 is a robust demand zone, providing support.