A morning walk down Dalal Street | Strong breakout above 11,141 can lead Nifty towards 11,300

Positive global cues helped Indian markets climb crucial resistance levels during the week ended September 14, but the big move was seen in the small & midcaps space.

The S&P BSE Sensex rose 1.09 percent, while the Nifty50 was up 1.18 percent in the week ended September 14, compared to 2.2 percent gain seen in the S&P BSE Midcap index, and 3.3 percent rally seen in the S&P BSE Smallcap index in the same period.

There are as many as 49 stocks in the BSE500 index which rose 10-50 percent. These include HEG, Hindustan Copper, Parag Milk, Jindal Stainless, Shipping Corp of India, Coffee Day, Wockhardt, MMTC, and India Tourism, among others.

Ease in trade war tensions, expectations of dovish policy from the European Central Bank and US Federal Reserve, muted macro data lifted hopes of a bigger rate cut from the Reserve Bank of India, and, in turn, hopes for additional stimulus measure from the government lifted sentiment.

On the macro front, the country's foreign exchange reserves increased by $1.004 billion to $429.608 billion in the week to September 6, helped by a rise in foreign currency assets, RBI data showed on Friday.

India's exports dropped by 6.05 percent to $26.13 billion in August compared to the year-ago month, official data released on Friday showed. Imports too declined by 13.45 percent to $39.58 billion, narrowing trade deficit to $13.45 billion in August.

Media reports suggest that oil prices could jump as much as $10 per barrel after a number of drone strikes hit the center of Saudi Arabia’s oil industry, forcing the kingdom to cut its oil output in half.

"A 5% hit on global oil supplies is significant and oil prices are expected to spike once markets open on Monday. Historically, prices have jumped over 10% after such major events; hence, a $5-7/bbl jump can happen, although it may stabilize if the affected production is brought back quickly," Emkay Global said in a report.