Plans

The weekly RSI is 38.82; it has marked a new 14-period low, which is bearish. However, it remains neutral and does not show any divergence against the price. The MACD is bearish and remains below the signal line.

The pattern analysis shows that the NIFTY marked its most recent high at 18887; since then, though it remains in corrective decline, it has formed a falling channel. Currently, the index has slipped below the 50- and 100-Week MA, but rests at the lower edge of the falling channel. In the process, the index has also dragged its resistance lower to 17300 from 17500 levels.

Overall, the market is still resting at a crucial juncture. While some supports have been violated on the charts, the zone of 16850-17000 remains defended. As mentioned earlier, NIFTY will have to keep its head above this zone to avoid getting weaker. While a shaky start to the week is expected, there is a possibility that the markets attempt a technical rebound while staying within the broad range. The defensive packs are likely to relatively outperform the broader markets. It is strongly recommended that you maintain leveraged exposures at modest levels so long as the NIFTY is below 17300 levels. A cautious approach is advised for the coming week.