Week Ahead

The benchmark Nifty 50 gained more than 1 percent during the week amid a mixed March quarter earnings season, easing Middle East tensions, falling oil prices, and healthy manufacturing and services PMI flash numbers. However, in the previous week, the index was down 1.65 percent.

During the last week, the BSE Sensex rose 0.88 percent to 73,730, and the Nifty 50 climbed 1.2 percent to 22,420. But real action was seen in the broader markets, as the Nifty Midcap 100 and Smallcap 100 indices rallied 4 and 4.4 percent, respectively, and hit new closing highs.

In the coming truncated week, the market is expected to consolidate with a positive bias, with focus on the Fed's interest rate decision, corporate earnings, monthly auto sales numbers, and manufacturing PMI data. There will be more stock-specific action given the ongoing earnings season.

Technically, the Nifty 50 has formed a High Wave kind of candlestick pattern on the weekly charts, indicating indecisiveness among bulls and bears about the future market trend. Overall, the trend may remain in favour of bulls as long as the index holds the 22,300 level. Although there was a Dark Cloud Cover candlestick pattern on the daily charts on Friday, a bearish reversal trend.

``From a technical standpoint, the Nifty is currently trading within a rising channel pattern, suggesting potential bullish momentum if it manages to stay above 22,300 in the upcoming week, with a likely target range of 22,750-22,800,.

Weekly options data indicates that the Nifty may face a hurdle at 22,500 on the higher side, and sustainability above the same may take the index to the much-awaited 23,000 mark, whereas 22,000 is expected to be a key support in the coming sessions.