Week Ahead

The market had a strong close for the truncated week ended on March 28, as the benchmark indices gained 1 percent with participation from most sectors barring IT after consolidation in previous couple of weeks. In fact, the monthly expiry session for March derivative contracts had a good rally, indicating the market may be inching towards a record high soon.

The Nifty 50 rallied 230 points to 22,327, and the BSE Sensex jumped 819 points to 73,651, while the broader markets had a better week than benchmarks as the Nifty Midcap 100 and Smallcap 100 indices gained 1.6 percent and 1.4 percent respectively.

Overall, the first week ahead of the new financial year FY25 is expected to be positive for the market with focus on auto sales data, manufacturing & services PMI numbers, RBI interest rate decision, and expectations for March FY24 quarter earnings.

Technically,the Nifty 50 reclaiming 22,300 in the recent trading session with above average volumes and holding above downward sloping resistance trendline as well as trading above all key moving averages is certainly a positive sign.

On a weekly basis, Nifty formed a bullish candlestick pattern with a higher high, higher low formation on the weekly charts. Additionally, it remained above the 10-week EMA, which acted as a support on a closing basis. The next upside levels to be watched are around 22,550-22,650 in the next week, while immediate support is at 22,200-22,100 levels.

Options data also indicated that the Nifty 50 may face resistance at 22,500-22,600 levels in the new series, with support at 22,200 and 22,000 levels.