Week Ahead

The equity markets had a spectacular run in the week ended December 8, reporting the biggest weekly gain in last 16 months and hitting the much-awaited psychological 21,000 mark for the first time.

The Nifty50 closed at 20,969, up 702 points or 3.46 percent, the biggest weekly gain since July 2022, while the BSE Sensex rallied 2,344 points or 3.47 percent to 69,826.

Foreign institutional investors came back strongly in December, buying nearly Rs 10,900 crore worth of shares in the current month so far, in addition to more than Rs 7,000 crore worth buying in previous month. Hence, this is one of the factors that helping the market to make a new high last week.

The broader markets also recorded gains with the Nifty Midcap 100 and Smallcap 100 indices rising 2.35 percent and 1.16 percent respectively.

In the coming week, after consistent run up in past six weeks, the market is expected to see a rangebound trade and consolidation.

The market momentum looks very strong with the Nifty50 hitting 21,000 mark last week. And overall, we expect the trend to remain positive, but considering the one-way rally in the recent past, we see some kind of consolidation in coming weeks before getting into another leg of upmove towards 21,500-22,000 levels. The immediate support is expected at 20,850 and 20,600-20,500 may act as crucial support.

The Options data also indicated that 21,000 is the crucial level to watch as closing decisively above the same can take the Nifty towards 21,500, while the immediate support seems to be at 20,800, and crucial support at 20,500.