Volatile week for markets: Sensex sheds 1.3%, FIIs continue selling as geopolitical tensions rise

Amol Athawale, VP-Technical Research, Kotak Securities:

The week opened positively, but once again, the market faced resistance near 25,200/82800 and reversed. Technically, on weekly charts, it has formed a long bearish candle and is currently trading comfortably below the 20-day SMA (Simple Moving Average), which is largely negative.

We believe that as long as the market remains below the 20-day SMA or 24,850/81600, weak sentiment is likely to continue. On the downside, the market could retest the level of 24,500/80500. A breach of 24,500/80500 could accelerate selling pressure. Below this level, the index could slip to the 50-day SMA around 24,300/79900.

On the upside, a break above 24,750/81300 could extend the pullback move up to 24,850/81600. Further gains may also continue, lifting the market toward 24,950–25,000/81900-82100.

For Bank Nifty, the key support zone is between 55,000 and 55,200. Above this range, it could bounce back toward 56,100–56,300. Conversely, a fall below 55,000 increases the likelihood of testing the 50-day SMA or 54,500.

Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services

We expect market focus to remain on oil exploration companies on the back of rise in crude prices amidst the backdrop of escalation in Israel-Iran military action. Further, any such escalation would have a positive rub off effect on domestic defence companies on expectation of increased export orders amidst higher defence spending. Overall, we expect the market to remain subdued on the back of weak global cues, while industry-specific news flows would continue to drive sectoral movements.