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Below the quote on Weekly Note By Mr. Ajit Mishra, SVP - Technical Research, Religare Broking Ltd.

Markets traded under pressure and lost over half a percent, in continuation to the prevailing corrective phase.  After the upbeat start, pressure in the middle pushed the index lower as the week progressed however a rebound in the final session trimmed some losses. Eventually, both the benchmark indices, Nifty and Sensex, settled at 19,517 and 65721.25 levels respectively. The majority of sectors traded in sync and edged lower wherein realty, FMCG and auto were the top losers. Amid all, the broader indices managed to outperform for yet another week and gained nearly a percent each.

We are largely mirroring global counterpartsand indications are pointing towards a further slide,which may put further pressure on our markets. However, the downside seems capped, citing strong support around the 34600-34900 zone in the key US index, Dow Jones Industrial Average (DJIA).

On the benchmark front, Nifty has slipped below the support of short term moving average i.e. 20 EMA after five months and also breached the trend line indicating the loss of momentum now. We expect Nifty to consolidate in a broader range ahead wherein 19,100-19,300 would offer support in case of further decline whilea rebound towards the 19,650-19,850 zonewould attract profit taking again. Since we are seeing a mixed trend across sectors, the focus should be on stocks that are showing relatively higher strength and maintain strict risk management citing intermediate volatility.

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