The sharp fall for second consecutive session not only dragged the market to its two-month low on July 19, but also got it into negative territory for the week due to some disappointment over earnings, and unhappiness among FPIs after the Finance Minister refused to tweak the surcharge on the super-rich.
The BSE Sensex was down 560.45 points at 38,337.01, while the Nifty50 plunged 177.60 points to 11,419.30 on selling across sectors. Both benchmark indices fell a percent each for the week.
The index formed a bearish candle on daily as well as weekly scale, indicating bears are having the upper-hand on the Street, which could drag the index below 11,300 level, if it decisively breaks 11,400, which it managed to hold while closing on Friday, experts feel.
The correction in broader markets was higher than benchmark indices as the Nifty Midcap and Smallcap indices fell around 2 percent each on Friday and around 4 percent each for the week.
According to the pivot charts, the key support level is placed at 11,332.23, followed by 11,245.27. If the index starts moving upward, the key resistance levels to watch for out are 11,573.23 and 11,727.27.
The Nifty Bank closed at 29,770.35, down 660.25 points on July 19. The important pivot level, which will act as crucial support for the index, is placed at 29,469.47, followed by 29,168.63. On the upside, key resistance levels are placed at 30,307.47, followed by 30,844.63.
In an interview to CNBC-TV18, top market experts recommend which stocks to bet on for good returns:
Ashwani Gujral of ashwanigujral.com
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
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