NIFTY: TECHNICAL OUTLOOK

Last week, the Nifty opened on a flat note and witnessed pullback action till 5,969. However selling pressure at higher levels dragged index lower and ended the week marginally lower at 5,887. Nifty on the weekly chart has extended its correction for the third consecutive week losing almost 260 points from the recent Top of 6,111 levels. Nifty has formed a small bear candle with either side shadows which resembles to ‘Doji’ candlestick pattern. This suggests slowdown or reduced downward momentum. With current close, Nifty is placed around its earlier support zone of 5,850 level which also coincides with 100 day SMA (5,830) levels. Hence these 5,850-5,830 levels would act as a crucial downward support area. However a decisive close below 5,850-5,830 levels would trigger a further selling pressure which would lead index towards 5,800-5,750. On the upside 5,970 and 5,990 levels would remain resistance. We reiterate the short term as well as medium term trend is still bearish and a selling pressure is likely on pullback rallies. During the week index is likely to trade with mixed bias within 5,930-5,750 levels.