Indian markets have been trading strong over the last few sessions and with US inflation easing recently, global markets have gained strength in the last two trading sessions. Indian markets could continue with bullish sentiment next week as well, as per SAMCO research team. The SAMCO research report follows..

Markets had a buoyant start for the week where the index initially witnessed a strong positive opening but the 18300 level was acting as a magnet for the index. On the 11th Nov i.e. Friday, the Benchmark index witnessed a strong gap up opening near 18300 levels and prices finally succeed to close above the same.

On the weekly chart, NIFTY has again formed a bullish candle and continues its prior bullish trend. The weekly trend oscillator RSI is above its respective reference lines indicating positive bias. The chart pattern suggests that if NIFTY sustains above the 18,300 level it could witness buying which would lead the index towards the 18,600 level. However, if the index breaks below the 18,000 level it would witness profit booking towards 17,800 and followed by 17,650 levels. Traders are advised to continue with an optimistic approach and now, with other sectors chipping in, we expect a good broad-based buying in the forthcoming week.

Expectations for the week

From a global standpoint, a slew of economic data is set to be released next week. As the fight against inflation is far from won, market participants will keenly watch the inflation figures of the UK and India. Additionally, UK’s unemployment rate would be in the spotlight given it was 3.5% in August, the lowest since 1974. In the US, figures for Production Price Inflation (PPI), Industrial Production, and Jobless Claims are expected which may influence market sentiment globally. Further, China’s Industrial Production data is due next week. Back home, D-street will see a number of new IPO listings. On the other hand, investors would be interested to see if the market rally in the frontline indices continues. Nifty50 closed the week at 18,349, up 1.28%.