After an extended weekend post Diwali, markets started off higher and clocked a fresh record high of 12,963 during the week gone by. Since there was no major follow-up buying seen in major heavyweight constituents, the Nifty was unable to show the 13,000 mark on the screen.

In fact, some profit-booking was witnessed in the last couple of sessions. The week concluded with nominal gains of six-tenths of a percent.

In the previous couple of weeks, markets have already taken a giant leap and mostly all the major positive factors are already priced in. Markets have no fresh trigger to continue the similar kind of pace.

We still do not rule out the possibility of immediate levels of 13100-13200, but the rally may not be that smooth now. The overall trend still remains strongly bullish and we continue with our ‘Buy on declines’ strategy but in between, we are likely to see some profit-taking.

For the forthcoming week, Friday’s low of 12730 will now be seen as key support. A move below this will extend the corrective move towards 12600 - 12450 levels; whereas on the higher side, 12963 is the level to watch out for.

In our intra-week commentary, we had mentioned how the banking index is showing some signs of being overbought and very much on expected lines, we witnessed nearly 1200 points correction in the last couple of days.