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

In the last truncated week, the benchmark indices witnessed selling pressure at higher levels, with the Nifty ends 2.6 percent lower while the Sensex was down by 2050 points. Among sectors, the IT index lost the most, shedding over 9 percent; however, despite the weak market sentiment, some buying interest was seen in PSU Bank stocks, resulting in the PSU Bank index gaining over 1 percent.

During the week, the market breached the crucial support zone of 23,500/77400, and after this breakdown, selling pressure intensified. Technically, on the weekly charts, it has formed a long bearish candle, and on the intraday charts, it is holding a lower top formation, which supports further weakness from the current levels.

We believe that after a sharp correction, the market is currently trading near the 20-day and 50-day Simple Moving Averages (SMAs). The short-term outlook suggests that if the market reclaims the 23,000/75800 mark, we could see a pullback rally up to 23,250-23,325/76500-76800. On the flip side, fresh selling is possible only after a break below 22,800/75200. If that happens, it could slip to 22,700/74900. Further downside may continue, potentially dragging the index down to 22,500/74400.

For Bank Nifty, the 200-day SMA, or 51,000, is a critical support zone. As long as it is trading above this level, the bullish setup is likely to continue. On the upside, it could move up to 52,200-52,500. However, if it falls below 51,000, the uptrend would become vulnerable. In that case, traders may prefer to exit their long positions

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