Weekly Market Quote - Arpit Jain, AVP at Arihant Capital Markets

"This week Market ended above 9950 Levels and on the valuation front NIFTY50 trading at trailing price-to-earnings multiple of 25.5.

Monetary policy decision was in line with consensus expectation. GVA growth projection was revised downwards to 6.7 percent while inflation expectation for March quarter inched up higher.

US markets gains on expectations of tax proposals, Japan's index Nikkei hits two year high and overall Global markets have been positive.

Focus will now move on to results, Import/export data and Govt action will also be keenly watched and in coming days we will see the markets remaining more stock specific and we can expect to see Sectors like Financials, private banks and automobile to do well in terms of quarterly performance.

On macro front, Industrial Production (IIP) data for August 2017 and inflation data based on consumer price index (CPI) for September 2017 will be announced on Thursday, October 12. Trade data for September will be announced on October 13-16.

On the global front, Chinese Caixin Services PMI data will be announced on Monday, October 9. Japanese Current Account, UK Manufacturing Production data will be announced on Tuesday, October 10. US FOMC Meeting Minutes will be announced on Wednesday, October 11. Europe Industrial Production, US Unemployment Claims will be announced on Thursday, October 12. Chinese Trade Balance, US CPI, US Retail Sales data will be announced on Friday, October 13.

The initial public offering (IPO) of India's first power exchange, Indian Energy Exchange Ltd will open its IPO on October 9 and close on October 11, price band at Rs 1645-1650 per share. The government owned general reinsurer; General Insurance Corporation of India (GIC) Ltd will open its IPO on October 11 and close on October 13, price band at Rs 855-912 per share.

Technical Outlook

The current price action on the weekly chart suggests that the weekly bias has turned positive. Further, we are observing that the momentum oscillator viz. the RSI is gaining momentum. This suggests that upside momentum is likely to continue.

At present Nifty has resistance at 10061 - 10107 - 10161 levels whereas on the downside it has support at 9897 - 9851 - 9797 levels.

In coming week if nifty trades and close above 10015 level then it is likely to test 10061 - 10107 - 10161 levels. However, if nifty trades and close below 9943 level then it can test 9897 - 9851 - 9797 levels.

Broadly, we are of the opinion that for current week 9780 remains a make or break level. Hence, as long as nifty holds the mentioned level, we are likely to witness upside momentum. In such scenario there is high probability that nifty may test 10100 - 10200 levels in couple of weeks.

Source : Equity Bulls

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