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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 selling pressure at higher levels, the Nifty ends 1.52 percent lower while the Sensex was down by 1182 points. Among Sectors, almost all the major sectoral indices witnessed selling pressure at higher levels but PSU Banks, Energy, Oil and Gas indices lost the most shed over 3 percent. During the week, market consistently facing selling pressure at higher level and it also slipped below crucial support level of 25000 / 81700 and post breakdown selling pressure intensified. 

Technically, on weekly charts, the index has formed long bearish candle and on intraday charts, it is holding lower top formation, which supports further correction from the current levels. We are of the view that, the current market texture is weak but for the short-term traders now 20 day SMA or 24820 / 81000 would act as a sacrosanct support zone. Below the same, the selling pressure is likely to accelerate. Below which, the market could retest the level of 50 day SMA or 24600 / 80500 and 24500 / 80100. On the other side, above 25000/81700 the market could bounce back up to 25100-25150 / 82000-82300.

For Bank Nifty as long as it is trading below 20 day SMA or 51000 the weak sentiment is likely to continue. Below the same, it could slip till 50000-49600. However, above 51000 we could see a one-pullback rally till 51300-51450.

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