Week Ahead

The market had a lacklustre week ended November 24 due to the absence of any major global and domestic cues, yet ended higher for the fourth consecutive week. The coming truncated week will be full of news including exit polls after five State elections, September FY24 quarter economic growth, and second estimates for Q3-CY23 US GDP numbers, which seem to be eagerly awaited by the participants.

The Nifty50 climbed 63 points to 19,795, and the BSE Sensex rose 175 points to 65,970, supported by auto, banking & financial services, energy, metal and pharma stocks.

Next week we expect some momentum in market to return as investors will take cues from various economic data including GDP numbers for US, & India.

One of the most important factors on the domestic front will be the much-awaited exit poll predictions for five states namely Mizoram, Madhya Pradesh, Chhattisgarh, Rajasthan and Telangana on November 30, which will be released in the evening on November 30 after the voting in Telangana. The voting in the other four states was completed last week.

Technically Nifty50 maintained upward journey for fourth straight week with making higher lows for four days in a row and faced strong hurdle at 19,850-19,900 area on the higher side, while taking strong support at 19,600, which coincides with the 20-day EMA. Further, it sustained above 20-week EMA (exponential moving average - 19,408) for three weeks in a row. Hence, if it decisively breaks the hurdle on the higher side, then 20,000-20,200 can be the possibility with support at 19,700.

A decisive move above 19,850-19,900 levels is expected to open a sharp upside towards new all-time highs. Any weakness below 19,700 could find support at around 19,600 levels.