The Nifty index has corrected more than 17% from it’s all-time high of 18,604 in October 2021.Previous week was the worst-performing week for the Indian equities in the recent past, the benchmark indices suffered deep losses before ending the week on a very fractured note. In this week we have seen technical pullback in the market but failed to sustain above 15700 levels. Bears returned to Market again as benchmark indices opened on negative note on 22nd June with Nifty Index below 15600 levels.

The pattern analysis suggests that the NIFTY is now below most of the key moving averages. It is moving towards a falling trend line resistance level. This trend line is drawn from the low point of 16410 and joins the subsequent lower bottom. Overall, unless there are fresh positive triggers, it is expected that the markets may continue trading lower. Now in this scenario the NIFTY might stay in the range of 15,000 – 15,700 in the coming days. If the selling pressure continues, as per technical support and analysis, 14,185 could be possible where bottom to bottom trendline level presents. Given this pattern, it would be crucial to see if the NIFTY is able to defend the 15200-support zone over the coming days.

BANKNIFTY

The Bank Nifty extended losses for the third consecutive week and closed sharply lower by 5% at 32743 levels. The volatility remained immense given the number of uncertainties that surrounded the happenings around the world. The weekly price action formed a strong bear candle carrying lower high-low, indicating acceleration of downward momentum. The banking index is already moving below trendline support indicating more weakness in the coming sessions. The levels of 33600 and 33750 are likely to act as potential resistance points. The supports come in at 32150 level. If Index violated this support, prices dragged towards Fibonacci next support, which presently stands at 30440. A highly selective and stock-specific approach is advised for the coming weeks.