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Markets managed to end higher for the third successive week, mainly led by firm global cues. On the domestic front, auto sales data, favourable data of foreign inflows and MPC’s inline action on rates kept the tone positive in between. While a mixed trend across heavyweights capped the upside in the index, rotational buying kept the traders busy. Finally, the benchmark indices, Sensex and Nifty, ended with gains of 1.4% each to settle at 58,388.93 and 17,397.5 levels respectively. Among the sectoral pack, IT, power and auto posted decent gains.

The coming week is a holiday-shortened one and participants will be closely eyeing global markets and domestic factors viz. earnings and macroeconomic data for cues. Further escalation of China-Taiwan tension may result in volatile swings. On the data front, we have IIP and CPI inflation scheduled for August 12.
 
On the earnings front, companies like BPCL, HPCL, SBI, Bharti Airtel, Eicher Motors, Hero Motocorp, Hindalco, LIC and ONGC will announce their numbers along with several others.
 
Nifty has been taking a breather after the sharp surge and it’s healthy. It’s more of a time-wise correction so far as it’s still holding around the upper range of the consolidation zone. A decisive close above 17,400 would further fuel the momentum towards the 17,700-17,800 zone else range bound move would continue. On the downside, the 16,800-17,150 zone holds major support. Since we’re seeing rotational buying across sectors, participants should continue with a stock-specific trading approach and utilise dips to add quality names.