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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 volatile activity. After a roller coaster of fluctuations, the Nifty ended 0.97 percent lower, while the Sensex was down by 760 points. Among the sectors, the IT index lost the most, shed over 5 percent, whereas the PSU Bank index gained over 3 percent. During the week, after the correction, the market found support near 23050/76200 and bounced back sharply; however, it registered profit booking at higher levels once again.

Technically, on the daily and intraday charts, it is still holding a lower top formation, which suggests further weakness from the current levels. We believe that the current market texture is weak but oversold; hence, level-based trading would be the ideal strategy for short-term traders.

For bulls, 23300/76900 would act as a key resistance level. Above this level, we could see an extension of the pullback rally up to 23500/77500 and 23590/77800, or the 20-day Simple Moving Average (SMA). On the other hand, 23100/76300 will serve as a key support zone. Below this level, the market could slip to 23000/76000, with further weakness potentially dragging the index down to 22850/75700.

For Bank Nifty, as long as it is trading below 49200, weak sentiment is likely to continue. On the downside, it could touch levels of 48000-47600. However, if it breaks above 49200, the chances of hitting 49800-50000 would increase significantly.

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