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

In this truncated  week, the benchmark indices witnessed a sharp correction, the Nifty ends 2.45 percent lower while the Sensex was down nearly 2000 points. Among Sectors, almost all the major sectoral indices registered profit booking at higher levels but Metal index lost the most, shed over 5percent. During the week, market slipped below 24000/79000 and post breakdown the selling pressure intensified. Technically, on weekly charts, it has formed long bearish candle and on daily charts, it is holding lower top formation, which is largely negative. We are of the view that, the current market texture is weak but oversold, for the positional traders now, 200 day SMA or 23500/77400 (Simple Moving Average) would act as a sacrosanct support zone. Above the same, we could expect one quick technical pullback rally. On the higher side, the market could bounce back till 23800-24000/78500-79000. However, dismissal of 23500/77400 could trigger further weakness. Below which, it could slip till 23300-23200/77000-76600.

For Bank Nifty traders also 200 day SMA or 49750 would be the key support zone. if it sustain above the same, then it could move up till 50900-51200. However, below 49750 or 200 day SMA the sentiment could change. Below which it could slip till 49300-49000. Short-term traders should remain cautious and be very selective as there is a risk to get trapped at lower levels.

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