In last week’s report we had said that Nifty had made triple-bottom around 22774 low made on Friday, making this an important immediate support to eye. We had also said that 23235, the top made on Thursday, around which 20-DMA was also placed, was the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

Nifty, after touching a low of 22725 on Monday, reversed and surged all the way to 23050, but could not sustain there and fell all the way to 22720 before closing at 22795. For the week, the benchmark fell 0.6%, extending the losing streak to second straight week and posting lowest weekly close since 31^st May 2024.

OUTLOOK

20-month moving average, placed around 22450, would be next downside level to eye. If 22450 also gives way, correction can extend to 21800, around which a trendline adjoining bottoms made in June 2022 and March 2023 is placed.

On the way up, 23235, the top made on 13^th February, around which 20 and 34-DMAs are also placed, continues to be important immediate hurdle, with the stop-loss of which, trading shorts can be held on to.