WEEK AHEAD

The market snapped a three-week winning streak and fell more than 2 percent in the week ended June 10 as inflation risk, growth concerns, elevated oil prices, and FII selling hit the sentiment. Friday's trade was pathetic with the BSE Sensex tanking more than 1,000 points in a single day.

The BSE Sensex during the week corrected 1,466 points or 2.63 percent to 54,303, and the Nifty50 plunged 382.5 points or 2.3 percent to 16,202, while the Nifty Midcap 100 index fell 0.8 percent and Smallcap 100 index declined 1.1 percent.

Markets are again reeling under tremendous pressure across the globe citing sticky inflation which could prompt swift actions by the apex banks ahead. Indications are pointing towards the prevailing negativity to continue, however, bargain hunting in select index heavyweights could cap the damage.

Technically Nifty50 has seen a bearish candlestick formation on the daily as well as weekly charts as it has decisively broken crucial supports of 16,400 as well as 16,250 in a single session, indicating a clear nervousness on the street. The index lost 1.7 percent for Friday and 2.3 percent for the week to close at 16,202 levels.

Having the market turning into bearish mode, experts largely feel the index can take support at around 15,900-16,000 but if that gets broken then it can move towards the May lows.

The option data indicated that the Nifty could trade in a broader range of 15,800-16,700 levels in coming sessions with 16,000-16,200 being the crucial levels for stability.