Week Ahead

The market extended its upward journey for yet another week ended on February 23 with the Nifty hitting a historic high with above-average volumes despite FII outflow, though it was a volatile week.

For the last week, the benchmark indices ended at a fresh record closing high (every week). The Nifty 50 rallied 172 points to 22,213, and the BSE Sensex rose 716 points to 73,143, while broader markets underperformed frontline indices as the Nifty Midcap 100 index was up 0.3 percent and Smallcap 100 index fell 0.1 percent.

Next week the bulls are likely to maintain their stronghold over Dalal Street though there may be volatility and consolidation due to the monthly expiry of February futures & options contracts scheduled on February 29, with a focus on quarterly GDP numbers by India & US, monthly global manufacturing PMI data, and auto sales.

Technically, the Nifty 50 seems to be on a northward trajectory despite intermittent consolidation and minor corrections. As long as the index holds 21,900 (which coincides with the 21-day exponential moving average-EMA), the uptrend is likely to continue in the coming sessions with the next hurdle on the higher side at the 22,400 level, followed by the 22,500 mark.

Options data indicated that the Nifty 50 may face the next resistance at the 22,500 level, with support at the 22,000 mark.