Week Ahead

The Indian benchmark duo finally wriggled out of a two-week slump and closed a percent higher on November 3, aided by a cool-off in US bond yields and softening of crude oil prices. As the US monetary policymakers opted to maintain the key interest rates at 5.25-5.50 percent for the second consecutive time, there was immediate reaction in the global markets.

The Sensex rose 0.91 percent to close at 64,363.78, while the broad-based Nifty added 0.96 percent to end at 19,230.60 on

November 3.

Broader indices, too, cheered and outperformed the benchmarks. The BSE midcap and smallcap indices added 2 percent, while the largecap index was up 1.2 percent.

With India Inc entering the last leg of earnings season and Diwali cheer in the air, it will be crucial to see if markets are able to sustain this momentum.

Over 2,400 listed companies are set to announce their Q2 earnings between November 6-12. Prominent names in the Nifty50 which are yet to announce their earnings included Divis Laboratories, Power Grid Corporation, Adani Ports, Coal India, Eicher Motors, Hindalco Industries, Mahindra & Mahindra, and ONGC.

From a technical perspective, the Nifty has demonstrated a substantial rebound, particularly from the 200-Day Exponential Moving Average.. However, it's worth noting that resistance levels at 19,330, 19,440, and 19,550 pose challenges.

The correction is anticipated to conclude once the Nifty surpasses the 19,550 mark, maintaining a bullish outlook as long as it stays above the 19,060 mark. However, if the Nifty dips below this level, there is a risk of moving toward the 200-day DEMA, currently situated around 18,650.