Week Ahead

Last week, BSE Sensex shed 0.52 percent or 376.79 points to finish at 71,106.96, while Nifty50 declined 107.25 points or 0.49 percent to end at 21,349.40. On December 20, the Sensex and Nifty hit fresh milestones of 71,913.07 and 21,593, respectively.

Among sectors, the Nifty PSU Bank index plunged 3 percent, the Nifty Media index was down 2 percent, the Nifty Auto index was down 1.4 percent, and the Nifty Metal index shed 1 percent. On the other hand, the Nifty FMCG and Pharma indices added 1 percent each. The Nifty Midcap 100 closed 1 percent lower while Nifty Smallcap 100 closed 0.27 percent down.

As we enter the last leg of this calendar year, Indian markets are staring at low trading volumes in a holiday-shortened week, a potential threat in a jump in COVID-19 cases and rising uncertainty in the Red Sea.

Heading into the festive season and year-end, we can anticipate a range-bound trade scenario with limited data points.

21,050-21,100 is now an important support for Nifty in the upcoming expiry week. It is crucial for Nifty to cross 21,430 for continuation of positive momentum upto 21,650-21,700.

As per the monthly options data, the Nifty 50 is expected to face resistance at 21,500-21,600, while 21,200-21,000 is likely to act as key support, followed by crucial support at 20,800 levels. Overall, the data suggested that the index may remain in the broad range of 20,800-21,600 levels for the coming days.