Week Ahead

BSE Sensex climbed 1,914 points to 59,277, and the Nifty50 jumped 517 points to 17,670, while the Nifty Midcap and Smallcap indices also traded in line with benchmarks, rising 3 percent each.

All key sectors, barring metal and pharma, participated in run up, with Auto, Bank, Financial Services, FMCG and Infra being the prominent gainers.

Markets are moving largely in sync with their global counterparts and positive developments on the Russia-Ukraine front could further fuel the rebound.

We expect stock-specific moves on earnings expectations. Almost all the sectors are contributing to the rebound now, however the contribution of the banking pack is critical for Nifty to test the 17,800-18,100 zone ahead.

Technically Nifty50 has strongly defended crucial 17,000 mark and has decisively broken the consolidation range to climb above 17,600 mark during the passing week, forming bullish candle on the weekly scale, while there was also bullish candle formation on the daily charts, indicating the positive bias ahead with hope the index could cross 18,000 soon with crucial support at 17,300-17,000. The index gained more than 1 percent on Friday and 3 percent during the week.

As per the option data, the Nifty50 is likely to trade in the range of 17,500-18,000 levels on an immediate basis, while the broad trading range would be 17,300-18,000.