Week Ahead...

The BSE Sensex closed above the 60,000 mark again, rising 1,293.48 points or 2.20 percent to 60,059.06, and the Nifty50 jumped 363.15 points or 2.07 percent to 17,895.20, while the broader markets continued to outshine with the BSE Midcap and Smallcap indices gaining 2.43 percent and 3.95 percent respectively during the week.

In the coming truncated week, we largely expect the benchmark indices to remain range bound unless there is substantial growth in the earnings of companies.

The Q2 FY22 results season is set to begin next week with large-cap IT companies reporting their results first. But macro data on September CPI inflation, manufacturing, and industrial production could dictate the index price for the majority of the week as markets continue to consolidate in their tight range.

In the coming week, all the focus of domestic investors will shift to September quarter earnings. More than 50 companies will declare their quarterly numbers including Infosys, Wipro, Mindtree, HCL Technologies, HDFC Bank, and Avenue Supermarts.

The Nifty50 has formed small bullish candle which resembles Doji kind of pattern formation on the daily charts as the closing was near its opening levels, while there was bullish candle formation on the weekly scale. The index gained 0.6 percent on Friday and rallied 2 percent during the week.

Technically, Nifty is trading near-critical resistance zone of 17,950-18,000 where it could again witness selling pressure but if it manages to trade above this zone then we could see a rally towards 18,200-18,300 levels.

On the downside, 20-DMA of 17,650 is immediate and important support; below this, 17,450 is a critical support level because below 17,450 we could see any meaningful correction.