Week Ahead....

The markets maintained their southward journey and closed the truncated week ending November 14 about 2.5 percent down. With this, the benchmark indices have corrected around 10 percent from the record highs of September 27.

The BSE Sensex declined 2.4 percent to reach 77,580, and the Nifty 50 dropped 2.55 percent to close at 23,533; comparatively, the correction was severe in the broader markets. The Nifty Midcap 100 and Smallcap 100 indices were down 4.1 and 4.6 percent, respectively. And all sectors, barring IT, were under pressure.

Consolidation may continue in the near term; however, beaten-down value stocks may witness bottom-fishing due to their potential outlook,

Technically, Nifty 50 is looking weak given the long bearish candlestick pattern on the weekly charts with lower highs and lower lows. Also, it is trading way below its 10-20-week EMAs and a tad below its 200-day EMA. If the index fails to come back above the 200-DEMA, it may start approaching its 50-week EMA (23,224), which somewhat coincides with the second target of the Head and Shoulders pattern formed on the daily charts, followed by 23,000.

The momentum indicators, too, remained in the negative terrain. After severe selling pressure, the index may rebound somewhat to the 23,700-23,800 zone, but that is unlikely to sustain given that the Nifty is trading below all its key moving averages.