Week Ahead

The BSE Sensex surged 1,444.59 points to 58,644.82, and the Nifty50 jumped 414.35 points to 17,516.30, while the broader markets also joined the rally with the Nifty Midcap 100 and Smallcap 100 indices rising 2.14 percent and 1.87 percent respectively.

All sectors participated in the budget-driven rally with the Metal, Pharma, FMCG, IT, and Bank being prominent gainers rising 3-6.6 percent.

On Monday the market will first react to SBI, Tata Steel and IndiGo earnings. Overall the coming week is also going to be crucial as we have RBI policy and corporate earnings, hence the volatile swings may continue with more of a stock specific opportunities, while keeping other eye on global cues including elevated oil prices.

The first Monetary Policy Committee meeting after the Union Budget, will start from Monday and will conclude on Wednesday. The commentary by RBI Governor Shaktikanta Das will be keenly watched by the street looking at any hint about rate hikes in coming months, when the global central banks are indicating faster tightening.

As we are almost towards the end of December corporate earnings season, more than 1,600 companies (as per BSE website) will release their quarterly earnings scorecard in the coming week between Monday to Saturday. Key ones to watch out for would be Bharti Airtel, ACC, Bosch, Power Grid Corporation of India, Hero MotoCorp, Hindalco, Mahindra & Mahindra, Divis Labs, and ONGC.

Technically Nifty50 managed to close above crucial 17,450 levels (around 50 days moving average placed around 17,438 levels) last week. Holding the same level in coming days could open up more upside towards 17,700-17,800 levels, however, breaking the same could bring bears back on Dalal Street.