It was a very volatile week but the market manages to end on a positive note. It seems that the tension between US & Iran is behind us as crude is below the level of pre-US-Iran tension whereas Nifty and Sensex are above pre-US-Iran tension levels. The market wants to look forward to where Q3 earnings and pre-budget movement will be the theme of next week. In terms of earnings Wipro, Indusind Bank, Reliance Industries, HCL Technologies, and HDFC Banks will be key companies that will post their Q3 results next week. Midcap and SmallCap stocks are outperforming since the beginning of 2020 where the pre-budget move is already started in many sectors and it will continue till the budget.
Infosys may react positively on Monday after the Infosys audit committee finds no evidence of financial impropriety or executive misconduct while it posts in line Q3 results. In terms of sector, Infra and realty sector are doing well ahead of budget where Cement stocks are showing decent strength as they are direct play to infra and realty sectors. Agriculture-related stocks like fertilizer, Agrochemicals, tractor stocks and some of the FMCG names may continue to do well ahead of the budget.
Technically, 12300 is still acting as a resistance for the Nifty where a decisive move above this level can lead a rally towards 12500 level. In the downside, 20-DMA of 12178 will act as immediate support while 50-DMA of 12048 will be a major support in the downside.