Week Ahead

In the week gone by, BSE Sensex gained 2.37 percent and ended at 71,483, after hitting a record high of 71,605, while Nifty50 gained 2.32 percent and closed at 21,456, after hitting a new milestone of 21,492.30.

There was action in broader markets, too. Nifty Midcap 100 gained 2.67 percent while Nifty Smallcap 100 gained 3.35 percent in the week gone by. All sectoral indices ended in the green with Nifty IT adding 7 percent, Nifty PSU Bank and Metal indices rising 5 percent each, and Nifty Realty index gaining nearly 4 percent after Federal Reserve indicated three rate cuts next year.

With Indian markets rallying for seven consecutive weeks, all eyes are now on whether bulls can stay in charge one more week. Positive global as well as domestic cues, including dovish Fed stance, FII buying, better macro data all indicate that the rally may well continue, but some consolidation cannot be ruled out.

Technically Nifty is maintaining its bullish momentum, marked by a breakout from a flag formation. Immediate target stands at 21,700, with the possibility of further upward movement to 22,000, although some consolidation may follow.

On the downside, 21,200 serves as immediate support, while 21,000 is a crucial support level in the event of any pullback.

The Options data suggested that the Nifty 50 is expected to march towards 22,000-22,200 zone in coming weeks, with support at 21,300-21,000 area.