Week Ahead

The market corrected for the fifth consecutive week ended August 25, but the loss amid volatility was lower compared to the previous four weeks.

The BSE Sensex fell 62 points to 64,887, and the Nifty50 declined 44 points to 19,267, while the broader markets outpaced benchmarks.

Considering the consistent selling pressure, the benchmark indices may try to rebound, but unless and until we get strong positive triggers, the rangebound trend may continue in the coming week too.

Technically Nifty50 corrected for the fifth straight week but has formed an Inverted Hammer kind of pattern on the weekly charts, which is a bullish reversal pattern. Hence, the possibility of rebound initially next week can't be ruled out with immediate resistance at 19,300-19,400 levels and if it possibly closes and sustains above 19,500 then there can be extension for the upward journey, but in case of fall, 19,230-19250 area is likely be the immediate support, and breaking of which can drag the index up to 19,000-18,900 levels, which coincides with horizontal resistance trendline.

The Options data indicated that the Nifty50 is likely to be in the range of 19,000, which can be critical support, and 19,500, which can be the key resistance area going ahead.