WEEK AHEAD....

The BSE Sensex climbed 2,005.23 points, or 3.57 percent, to close at 58,129.95, while the Nifty50 jumped 618.40 points, or 3.70 percent, to 17,323.60, while the broader market outweighed frontliners with the Nifty Midcap 100 index rising nearly 5 percent and Smallcap 100 index up 4 percent during the week.

In the truncated week ahead, the market, especially after a stellar rally last week, could see some consolidation initially but overall may continue its up move, with focus on global cues, IIP data and Covid-related updates.

The industrial output for the month of July is the key data to watch out for in the coming week, which is scheduled on Friday. Experts expect the growth to be in double digits on a low base in year-ago period and largely around similar lines of June data, with the strong manufacturing PMI data, easing restrictions by states in India and increased economic activity.

The output of the eight core sectors grew by 9.4 percent in July 2021, against a contraction of 7.6 percent in July 2020, and 9.3 percent growth in June 2021. The core sector output accounts for around 40 percent weight in the IIP basket. On account of the strong core sector performance in July 2021, we expect the growth in index of industrial production to be in the range of 12-14 percent.

Apart from factory output data, deposit & bank loan growth for the fortnight ended August 27, and foreign exchange reserves for week ended September 3 will also be released on Friday.

Technically Nifty50 formed bullish candle on the daily as well as weekly charts as it gained half a percent on Friday and surged 3.7 percent during the week, indicating the continuity in overall positive momentum going ahead, but experts largely feel initially some amount of profit booking and consolidation can't be ruled out in the coming week considering the sharp run up last week with the index registering a fresh record high at 17,340 levels.

There is a possibility of further upside in Nifty for the next week towards 17,500-17,600 levels. The crucial supports like daily 10 period and 20 period EMA is placed around 17,260 and 17,200 levels respectively.