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Below the Quote On Market Wrap Up by Amol Athawale, VP-Technical Research, Kotak Securities Ltd

In the last week, the benchmark indices corrected sharply, the nifty ends 1.87  percent lower while the Sensex was down over 1200  points. Among Sectors, PSU Banks drop 6 percent, Oil, and Gas indices shed  5 percent, whereas FMCG and Auto indices outperformed, and FMCG both indices gained over 1 percent.

During the week, market slipped below 20 and 50 day SMA (Simple Moving Average) and consistently faced selling pressure at higher levels. Technically, on daily and weekly charts it has formed double top formation, which indicates upward trend has slowed down. In addition, on weekly charts it has formed long bearish candle, which is largely negative.

We are of the view that, the short-term texture of the market is still on the weak side but due to temporary oversold conditions, we could see one pullback rally from the current levels. For traders now, 22000/72500 and 21950/72300 are important support levels. Above the same, the market could bounce back up to 22200/73000. Further upside may also continue which could life the market till 50 day SMA or 22300/73300. On the flip side, fresh selling possible only after dismissal of 21950/72300, below which the market could correct till 21800-21700/71800-71500. For Bank Nifty, after a sharp correction currently it is trading near 50 day SMA. For the traders 47500 would be the key level to watch out, above the same it could bounce back till 20 day SMA or 48200. On the flip side, below 47500 the chances of hitting 47100-47000 would turn bright.  

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