Week Ahead

The BSE Sensex tanked 1,775 points to close at 57,012, and the Nifty50 plunged 526 points to close below the crucial 17,000 mark at 16,985.20. The broader markets also followed the same trend as the BSE Midcap and Smallcap indices declined 4.5 percent and 2.75 percent respectively

The market wiped out previous week's gains as it fell sharply by 3 percent in the week ended December 17, attributing to hawkish stance taken by the Federal Reserve, surprise rate hike by Bank of England, and consistent FII selling.

All sectors, barring IT, caught in bear trap with the Realty hitting the most, down more than 8 percent. Auto, Bank, Financial Service, FMCG, Infra, and Metal corrected 3-5 percent, while IT index gained 2 percent .

Technically Nifty50 has seen a formation of large bearish candles on the daily as well as weekly charts, falling 1.5 percent on December 18 and correcting 3 percent to close below the crucial 17,000 mark in the passing week, indicating nervousness in the market.

We expect the bearishness in the market to continue and feel 16,900 is expected to act as a crucial support in the near term, followed by 16,782, white going up it is likely to face resistance at 17300.