Quote on Weekly Market Wrap by Amol Athawale, VP-Technical Research, Kotak Securities
Below the Quote on Weekly Market Wrap by Amol Athawale, VP-Technical Research, Kotak Securities
In the last week, the benchmark indices witnessed a sharp correction, with the Nifty ends nearly 3 percent lower while the Sensex was down over 2000 points. Among sectors, all the major sectoral indices registered profit booking at higher levels, with the Capital Market and IT indices correcting sharply. The Capital Market index was down by 9.28 percent, while the IT index declined by 7.90 percent. During the week, the market slipped below 22,500/74500, and post-breakdown selling pressure intensified. Technically, it has formed a bearish candle on weekly charts and is holding a lower top formation on daily and intraday charts, which is largely negative.
We view the current market condition as weak but oversold, hence the strong possibility of a pullback rally from the current levels is not ruled out. For short-term traders, 22,200/73500 would be the key level to watch out. Below this, the market could slip to 22,000-21,800/73000-72500. On the flip side, if the index sustain above 22,200/73500, sentiment could change. Above 22,200/73500, we may see a quick pullback rally up to 22300/74000, with further upside potential that could lift the market up to 22500/74500
For Bank Nifty, as long as it is trading below 48,500, weak sentiment is likely to continue on the downside, with immediate support zones at 48,000 and 47,500 However, if it moves above 48,500, it could bounce back to 49,250-49,500 or the 50-day SMA (Simple Moving Average).
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