During the week, the market remained weak on the back of weak IIP numbers, Diwali holidays, weak global markets, announcement on Technology sector from NASSCOM  and appreciation of Indian Rupee. However, on Friday it fell vertically on the back of steep weakness in Indian Rupee and rise in Dollar Index. 

Banking sector also failed to perform on the back of comment on banking licence. The above-mentioned reasons have left no room for any major sector in the market to perform.  Rest other sectors have no weightage to move the market on the other side.

For the coming week we are expecting world markets especially US markets will start stabilizing or will recover from lower levels. Even till the winter session starts, the market will try to hold major levels like 5530/5540. If it breaks 5,530, then the Nifty may slide to 5450 or to 5400 levels. In case if it comes down to 5400 levels then buy look for adding long positions in index stocks with a medium term view. 

On the other side if Winter session goes smoothly and Nifty closes above 5570, then the chances will turn bright to hit 5900/5950 in next few weeks. Design the trading and investment strategy accordingly. Add auto stocks on declines without any hesitation.



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The author is  Head- Technical Research, Kotak Securities