In last week’s report we had said that Nifty had confirmed a “Sell” on it’s hourly chart and that 20 and 34-DMAs, placed around 24600 and 24300 respectively, were the next downside levels to eye.

Nifty plunged all the way to 23893 on Monday, from where it rebounded to end the week at 24367. For the week, the benchmark fell 1.4%, extending the losing streak to second straight week.

OUTLOOK

20-DMA, placed around 24550, is the immediate hurdle, upon crossover of which, 24686, the upper end of the gap created by Monday’s gap-down opening, would be next upside level/resistance to eye.

On the way down, 23893, the bottom made during the week, is the important support, upon breach of which, 23628 and 23180, the 38.2% and 50% retracement levels of the recent 21281-25078 upmove, would be next downside levels to eye.