Week Ahead

While the week ended November 12 was a roller coaster ride for the market, the bulls managed to keep their hold for the second consecutive week. The benchmark indices gained a percent each for the week and the broader market traded in line.

On November 12, the BSE Sensex managed to get back above the crucial 60,000-mark amid volatility, rising 619.07 points to 60,686.69, while the Nifty50 reclaimed 18,100, gaining 185.95 points at 18,102.75. Infra, energy, IT, and auto stocks lifted the market, but the selling in banks and pharma restrained the upside.

In the coming truncated week, corporate earnings (Hero MotoCorp, Ashok Leyland, Grasim, Coal India, and ONGC) will drive the market along with CPI inflation and industrial output data, which came in after market hours on Friday. Overall, the benchmark indices are expected to see a range bound trade with focus on global cues, including inflation concerns,

Given that most of the quarterly results and (Indian) festival season is behind us, indices are expected to move sideways. As markets across the world are trying to decode the implications of rising inflation, any intensive selling by FIIs may take Indian indices lower, unless the domestic players provide support.

The FII outflow continued in the equity market as they net sold Rs 4,901.76 crore worth of shares during the week, but the domestic institutional investors came to the rescue by buying Rs 5,393.52 crore worth of shares.

Technically Nifty50 saw bullish candle formation on the daily as well as weekly charts, with closing above 18,100 mark. We feel as long as the Nifty50 trades above crucial 18,000 mark, the uptrend may continue in coming days.

.As long as the index is trading above the same the uptrend wave will continue up to 18,200-18,400 while on the other hand, a close below 18,000 could increase further weakness till 17,850-17,650..