Nifty, Sensex post sharp weekly losses; key levels to watch next week
Technically, on daily charts, the market has formed lower highs and lower lows, and on weekly charts, it formed a long bearish candle, which is largely negative.
During the week, the market breached the crucial support levels of 24,000/79,000, and post-breakdown, selling pressure intensified. (Image: Freepik)
During the week, the benchmark indices corrected sharply. The Nifty ended down by 5.20 per cent, while the Sensex declined by over 4,300 points. Among sectors, almost all major sectoral indices witnessed selling pressure at higher levels, but the Auto index lost the most, shedding over 10.50 percent. During the week, the market breached the crucial support levels of 24,000/79,000, and post-breakdown, selling pressure intensified.
Technically, on daily charts, the market has formed lower highs and lower lows, and on weekly charts, it formed a long bearish candle, which is largely negative.
“We believe that as long as the market is trading below 23,400/75,000, a weak formation is likely to continue. On the downside, the market could continue its correction wave until 22,800/73,600. Further downward movement may also continue, potentially dragging the index to 22,600/73,000,” says Amol Athawale, VP Technical Research, Kotak Securities.
On the other side, above 23,400/75,000, the pullback move could extend until 23,600-23,800/75,600-76,100.
For Bank Nifty, it corrected nearly 7 per cent this week. In the near future, 54,500 will be the key level to watch. Below this level, it could slip to 53,000-52,500. Conversely, above 54,500, the pullback could extend to 55,500-55,800.
