Week Ahead: After a Vertical Rally, the Focus Shifts to Holding Recent Gains

The Indian equity markets staged a spectacular rally during the week, ending with substantial gains as investors gave a resounding thumbs-up to the outcome of the US midterm elections, which saw Republicans suffer major setbacks. The Nifty witnessed an exceptionally strong directional move, opening the week on a firm footing and extending its gains as the week progressed as the Index traded in a remarkably wide range of 1,823.30 points. The sharp rise in equities was accompanied by an equally sharp increase in volatility as India VIX surged 14.18% to 17.47. The headline Index ended the week with a massive gain of 1,977.25 points (+8.58%).