Week Ahead

The BSE Sensex fell below psychological 60,000 mark, declining 1,514.69 points to 59,306.93, and the Nifty50 broke 18,000 levels, down 443.25 points to 17,671.65, continuing downtrend for the second consecutive week. The selling pressure was seen across sectors with private bank, IT, metal and realty indices being the biggest losers. The correction in the broader market was slightly less than the benchmarks as the Nifty Midcap 100 and Smallcap 100 indices shed nearly 2 percent each.

We are seeing profit taking for the last two weeks and indications are pointing towards a further slide. Keeping in mind the prevailing trend and excessive volatility, it's prudent to maintain extra caution.

More than 350 companies will release their September quarter earnings in the coming holiday- shortened week including important ones - HDFC, Tata Motors, Bharti Airtel, State Bank of India, Sun Pharma, Eicher Motors, HPCL, Divis Laboratories, and IRCTC.

Among others, Aditya Birla Capital, Devyani International, Indian Railway Finance Corporation, SPARC, Lux Industries, Bank of India, Godrej Properties, Union Bank of India, Bajaj Healthcare, Bombay Dyeing, Dabur India, Easy Trip Planners, eClerx Services, Jindal Steel & Power, Laxmi Organic Industries, Minda Corporation, MTAR Technologies, PNB Housing Finance, Radico Khaitan, Trent, Aditya Birla Fashion and Retail, Bata India, Pfizer, Muthoot Finance, Dhanlaxmi Bank, and Sun TV Network will also announce earnings next week.

Technically Nifty50 saw bearish candlestick pattern formation for daily as well as weekly charts, indicating bears have upper hand at the street, which we feel can drag the index below 17,500 levels in coming days and for the upside, 18,000 is expected to be crucial level to watch out for..