Week Ahead...

The market created history in the week ended October 14, with the Nifty50 surpassing 18,000 and the BSE Sensex scaling above 61,000 mark as the mood at Dalal Street remained upbeat for the second consecutive week. The participation in the rally was seen across sectors barring IT. Auto stocks rallied on expectations of demand revival in festive season, while banking stocks gained after strong Q2 provisional numbers and favourable credit growth data.

The benchmark indices ended at fresh record closing highs. The BSE Sensex scaled above 61,000 mark for first time, rising 1,246.89 points or 2.08 percent to end at record closing high of 61,305.95, while the Nifty50 finally crossed the much-awaited 18,000 levels and continued uptrend till 18,350 levels, before closing at 18,338.55 with 443.35 points or 2.48 percent gains.

Quarterly results will dictate market sentiment and will be the talk of the coming week as they pick up pace. D-Street would be all ears to any management insights to forecast the future earnings trajectory.

The quarterly earnings season will be in full swing in the coming week as nearly 200 companies will declare their July-September period scorecard. Amongst them, UltraTech Cement, ACC, Hindustan Unilever, Nestle India, Asian Paints, Yes Bank, JSW Steel, TVS Motor Company, HDFC Life, L&T Infotech, Havells India, Jubilant Foodworks, Biocon, PVR, Tata Consumer Products, Reliance Industries, and ICICI Bank are the key ones to release earnings next week.

Technically the Nifty50 formed bullish candle on the daily as well as weekly charts as it gained 1 percent on October 14 and 2.5 percent for the week, indicating further upside momentum which is unfolding in the market before any profit booking.

Though, Nifty closed near the all time highs, still there is no indication of any reversal formation at the new highs. As per the theory of higher tops and bottoms, one may expect profit booking in the Nifty from near 18,500-18,600 levels by next week. Immediate support is placed at 18,265 levels.