Week Ahead...

The BSE Sensex closed above the 61,000, rising 1,478.38 points during the week to 61,223, while the Nifty settled at 18,255.75, up 443 points.

Broader markets also joined the party. The BSE midcap and smallcap indices gained 2.4 percent and 3 percent.

Markets have made remarkable progress in the last one month and now inching closer to a record high. While we have mixed indications from the global markets, we believe earnings would dictate the market trend ahead.

The earnings season will be in full swing as biggies from several sectors, including UltraTech Cement, Bajaj Finance, Bajaj Auto, Asian Paints, Bajaj Finserv, Hindustan Unilever, JSW Steel, Reliance Industries and ICICI Bank, will report their December quarter numbers.

Technically Nifty formed a bullish candle on the daily charts despite a negative close (down 2 points on January 14), as the closing was higher than opening levels. For the week, there was strong bullish candle formation on the weekly scale as the index gained 2.5 percent, indicating positive momentum.

After decisively crossing the 17,900-17,950 hurdle, the market seems to be in a strong position and could surpass its previous closing high of 18,604 levels soon, though there could be small intermittent corrections.

We suggest traders maintain a bullish bias on the market.

Minor dips cannot be ruled out and those around immediate support levels can be used as buying opportunities. Immediate support for the Nifty is at around 17,700.