Midcaps just did something they haven't done in 2 years.

Week in Review

The Nifty 50 ended the week at 24,050.6, posting a weekly gain of 1.16%. The biggest single-day move for the Nifty was on Wednesday, with a 1.35% increase. The overall market character was bullish, with the Nifty Midcap 100 index surging 7.8% for the week, its highest weekly gain in two years. The index is now trading above all key moving averages, both short and long term. The Smallcap 100 RSI also moved above 60 and is climbing, indicating broader momentum in the market.

The India VIX, a measure of market volatility, declined 7.72% to 18.85, indicating a decrease in market uncertainty. The Bank Nifty outperformed the Nifty, ending the week at 55,912.75 with a 1.99% gain. The overall sentiment was positive, with midcaps and smallcaps leading the charge.

Sector Scorecard

The top-performing sectors for the week were:

• Pharmaceuticals, up 5.21%
• IT, up 4.56%
• Auto, up 4.23%

The bottom-performing sectors were:

• Consumer Durables, down 2.15%
• Telecom, down 1.89%

The outperformance of pharmaceuticals and IT sectors was driven by strong earnings and positive sectoral trends. The auto sector also saw a significant gain, driven by expectations of a revival in demand.

FII / DII Flow Summary

Foreign Institutional Investors (FIIs) were net buyers to the tune of Rs 2,351 crore for the week, while Domestic Institutional Investors (DIIs) were net sellers of Rs 1,512 crore. The net FII inflow signals a positive sentiment among foreign investors, who are betting on the Indian market's growth potential. The DII outflow, on the other hand, may be a sign of profit-booking by domestic investors.

Next Week Setup

The directional bias for the next week is expected to be bullish, driven by the momentum in midcaps and smallcaps. The key macro factors that will drive the market next week are:

• Earnings season, with several major companies scheduled to announce their quarterly results
• Global economic trends, particularly the US Federal Reserve's monetary policy decision
• Domestic inflation data, which will influence the RBI's monetary policy stance

The market will closely watch these factors, which will have a significant impact on the market's direction and sentiment.

Key Levels & Events to Watch

The Nifty has key support levels at 23,500 and 23,000, while the resistance levels are at 24,500 and 25,000. The scheduled events for the next week include:

• RBI's monetary policy meeting, which will be closely watched for any changes in interest rates or policy stance
• Earnings announcements by major companies, including ITC, Hindustan Unilever, and Asian Paints
• Global economic data, including the US GDP growth rate and the Eurozone inflation rate

These events will have a significant impact on the market's direction and sentiment, and investors will be closely watching them to make informed investment decisions.