Week Ahead

The BSE Sensex fell 492 points to 58,153 and the Nifty50 declined 142 points to 17,375, weighed down by FMCG, IT, infra, select banking & financials and energy stocks. However, metals stocks bucked the trend with the respective index rising more than 3 percent.

The broader markets also caught in a bear trap where the maximum selling pressure was seen during the week. The Nifty Midcap 100 index declined 2.3 percent and Smallcap 100 index plummeted 4.5 percent.

The coming week is expected to be volatile as investors will keep a close watch on oil prices, minutes of the recent Fed meeting (February 17) to get clear idea about further action.

Technically Nifty50 formed bearish candle on the daily as well as weekly charts as it closed 1.3 percent down on Friday and fell 0.8 percent at 17,374.75 during the week respectively, but it has been consolidating in a narrow range.

The index failed to close above 10 (17,470), 20 (17,566) and 50 (17,464) days moving averages and has been facing hurdles at 17,800 for several weeks, which needs to get cleared for sharp upside ahead.. On the downside, it has managed to hold on to the 17,000 mark quite well, which could be crucial support.

The upside bounce of the last three sessions seems to have reversed down and the market is now poised for more downside towards 17000 levels by next week. The overall chart pattern indicates a chance of minor upside bounce from the lows and a probability of deep cut in the market in the near term. Immediate resistance is placed around 17,460 levels.