Week Ahead

The Nifty gained 166 points to end at 22,378, and the Sensex climbed 663 points to close at 73,806. The broader market underperformed. The Nifty Midcap 100 index was down 0.3 percent and the smallcap 100 index 0.03 percent during the week.

Stellar Q3 GDP numbers, healthy performance in the manufacturing sector and strong auto sales data for February lifted the sentiment.

The bulls, are expected to keep the momentum strong in the coming week, though there is a possibility intermittent consolidation with focus on US Federal Reserve chairman Jerome Powell's testimony, monthly global services PMI numbers, US economic data and China's inflation.

Technically, the Nifty 50 looked quite strong with continuation of higher highs formation for third consecutive week with positive bias in momentum indicators RSI and MACD . With a decisive breakout of consolidation above 22,300, we expect the Nifty to hit 22,500, the immediate resistance level, with support at 22,200 in the coming week.

The options data indicates that the Nifty may hit 22,800-23,000 levels in the medium term but in the immediate term, it may face resistance at 22,500, with support at 22,200-22,000.