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Below the Quote on Weekly Market Wrap by Amol Athawale, VP-Technical Research, Kotak Securities

In the last week, the benchmark indices witnessed profit booking at higher levels. The Nifty ended 2.4 percent lower, while the Sensex was down by 1848 points. Among sectors, the IT index outperformed, gaining over 1.9 percent, whereas the PSU Banks and Realty indices lost the most, shedding over 6 percent. During this week, the market breached the 200-day SMA (Simple Moving Average) support zone, and post-breakdown, selling pressure intensified.

Technically, it has formed a long bearish candle on the weekly charts and is holding a lower top formation on the intraday charts, which is largely negative. We are of the view that the current market texture is weak but oversold; hence, a strong possibility of a pullback rally from the current levels is not ruled out.

For short-term traders, 23600/77800 would be the key level to watch. Above this level, the pullback move could continue till  23800/78500. Further upside may also persist, potentially pushing the market up to the 200-day SMA or 24000/78800. On the flip side, if the market falls below 23350/77100, selling pressure is likely to accelerate. Below which, the market could slip to the 23250-23100/76800-76500 range.

For the Bank Nifty, the short-term formation is weak, and a pullback rally is possible only after a decisive break above 49500. If this level is surpassed, it could bounce back to the 50000-50200 range. Conversely, as long as it trades below 49600, weak sentiment is likely to continue. On the downside, 48300 and 48000 are key support zones for traders.

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