Week Ahead....

The Nifty50 shed the previous week's gains and closed lower in the week ending November 8 amid consolidation due to subdued corporate earnings, selling by FIIs, and stretched valuations. Further, China's $839 billion refinancing of local government debt was below expectations and could not enthuse the global markets. However, volatility reduced after Republican Party nominee Donald Trump won the US elections and the Federal Reserve cut interest rates by 25 basis points.

The Sensex slipped 0.3 percent during the week to close at 79,486, and the Nifty50 dropped 0.64 percent to close at 24,148, while the Nifty Midcap 100 and Smallcap 100 indices fell 0.25 and 1.86 percent, respectively. Strong buying of tech stocks limited losses for the week.

In the coming truncated week, the market is expected to consolidate further with stock-specific action due to the last lot of the September quarter results, US inflation, Fed Chair Jerome Powell's speech, India's CPI inflation, and FII activity.

Indian equities are expected to move sideways on the back of global factors and subdued quarterly results.

Technically, the market is looking weak and is expected to remain consolidative as the Nifty50 remained below its 10 and 20-week EMAs (exponential moving averages), which need to be breached for a sustainable upward journey. Overall, the lower-highs-lower-lows formation has been in place since October, while last week's volumes were above average.

The index formed a bearish candle with upper and lower shadows, resembling a high wave pattern on the weekly charts, indicating volatility and indecision among bulls and bears about future market trends. The 24,000 mark is expected to act as the immediate support, followed by 23,800 if the sales pressure increases. On the other hand, resistance is expected at 24,500, and a decisive and sustainable close above that may make the markets rally.

The weekly options data indicates that the Nifty may face resistance at 24,500, and see support at 23,500.