Week Ahead

Nifty50 climbed nearly 100 points to 19,751, and the BSE Sensex rose 287 points to 66,283, while the Nifty Midcap 100 and Smallcap 100 indices also gained around half a percent each.

Most of sectors, barring technology and PSU banks, closed in green with Realty and Auto being the biggest gainers with 4 percent and 3 percent rally respectively.

We expect markets to remain in a broad range with positive bias on the back of strong economic data along with expected healthy corporate earnings.

The corporate earnings season will be in full swing in the coming week as companies with 40 percent weightage in the Nifty50 will release their quarterly scorecard including HDFC Bank, Bajaj Finance, Bajaj Auto, IndusInd Bank, Wipro, Hindustan Unilever, ITC, Nestle India, LTIMindtree, UltraTech Cement, JSW Steel, ICICI Bank, and Kotak Mahindra Bank.

Apart from corporate earnings, the market participants will also keep an eye on the Israel-Hamas war that started on October 7.

Technically, the Nifty50 has formed a bullish candlestick pattern with a prominent upper shadow on the weekly scale, after the Hammer pattern in the previous week, giving a confirmation of a possible upward rally, while on the daily charts, the index recovered smartly from day's low and closed in red but above 20-day as well as 50-day EMA (exponential moving average). The momentum indicator, RSI (relative strength index) stayed above 60 mark on the weekly charts, indicating positive bias.

Hence, if the index sustains above the 20-day EMA (19,690) and gets support from leading sectors (banks, and IT), then 19,850, the upper resistance of last week, can be cleared in the coming week, with immediate support at 19,500 and crucial support at 19,300, but till then it may remain in the range of 19,300-19,850 levels.

The Options data also indicates that 19,500 can be the support area in the coming days with resistance at 19,800-19,900 levels, but between 19,700 is expected to be crucial for a move towards either side of support-resistance levels.