Week Ahead

The BSE Sensex rallied 1,490.83 points to 59,744.65, and the Nifty50 jumped 458.65 points to 17,812.70, continuing an uptrend for the third straight week, supported largely by banking and financials, though IT and pharma underperformed during the week. The broader markets also joined the party with the BSE Midcap and Smallcap indices gaining 2 percent each.

The coming week is going to be crucial for the market as quarterly numbers will start flowing in with IT companies leading the pack. All eyes will also be on the economic data and the evolving COVID situation globally.

We believe earnings will dictate the market trend now and participants are hopeful of an encouraging start by the IT heavyweights.

The corporate earnings season will begin next week with 68 companies releasing their quarterly as well as nine-month scorecard. Key earnings to watch out for would be Infosys, TCS, Wipro, HCL Technologies and HDFC Bank, which have around 25 percent weightage in the Nifty50.

Technically Nifty on the weekly chart formed a long bull candle as per week's close and registered gains for the third consecutive week. The present weekly market action indicates a negation of a bearish weekly pattern of lower highs and lower lows. This is a positive indication.

We feel 17,600 is expected to be a crucial support level and 18,000 on the upside which, if crossed, there could be a sharp uptrend in the coming sessions.