"On the daily chart, the index has broken down from the rising channel, indicating a rise in bearish sentiment.
The trend is likely to remain weak in the near term, with resistance noted at 22,200.
As long as the Nifty remains below this level, a strategy of selling on rallies may be favorable for traders.
On the higher side, the immediate resistance zone for Nifty is at 22,200-250 levels and the next resistance is at 22,500 Mark.
All three indexes were up for the week with the blue-chip Dow nabbing its largest Friday-to-Friday percentage advance since mid-December.
Here's how analysts read the market pulse:
US market
European shares
Tech View: Inside Bar Candlestick
Stocks showing bullish bias:
Stocks signaling weakness ahead
Most active stocks in value terms
Most active stocks in volume terms
Stocks showing buying interest
Stocks seeing selling pressure
Sentiment meter favours bulls
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Indian benchmark equity indices closed higher on Friday, but logged their worst week in eight as concerns over the outcome of ongoing national elections and selling by foreign investors weighed on sentiment.The bluechip NSE Nifty 50 was up 0.44% at 22,055 points, while the S&P BSE Sensex advanced 0.36% to 72,664, at the close."On the daily chart, the index has broken down from the rising channel, indicating a rise in bearish sentiment. The trend is likely to remain weak in the near term, with resistance noted at 22,200. As long as the Nifty remains below this level, a strategy of selling on rallies may be favorable for traders. Support at the lower end is situated at 21,950 on a sustained basis; a decisive drop below this level could trigger panic in the market," said Rupak De, Senior Technical Analyst at LKP Securities Tejas Shah, Technical Research, JM Financial & BlinkX, said, "We need to wait and watch till the high (22,131) or low (21,950) of Friday’s daily candle is taken out for further direction on Nifty in today’s trading session. Support for the index is now seen at 21,950-22,000 and 21,700-800 levels. On the higher side, the immediate resistance zone for Nifty is at 22,200-250 levels and the next resistance is at 22,500 Mark. Overall, the trend remains negative."That said, here’s a look at what some key indicators are suggesting for Monday's action:US stocks eked out modest gains on Friday and all three indexes posted another weekly advance as investors parsed comments from Federal Reserve officials and looked ahead to crucial inflation data next week.The S&P 500 and the Dow were modestly higher and the Nasdaq ended essentially unchanged. All three indexes were up for the week with the blue-chip Dow nabbing its largest Friday-to-Friday percentage advance since mid-December. The Dow Jones Industrial Average rose 0.32%, the S&P 500 gained 0.16%, and the Nasdaq Composite dropped 0.03%.The pan-European STOXX 600 ended 0.7% higher, with indexes in major economies Germany and France finishing at record highs.European shares have resumed their record-breaking rally, with the STOXX 600 notching a 3% weekly gain, after investors took a breather in April.Nifty on Friday ended 98 points higher to form an Inside Bar candlestick pattern on the daily chart. If the headline index manages to hold Thursday's low of 21,932, a pullback looks possible to chartists.Momentum indicator Moving Average Convergence Divergence ( MACD ) showed bullish trade on the counters of Endurance Technologies, Capri Global, BPCL, V-Guard, Tata Communications, and Signatureglobal (India) among others.The MACD is known for signaling trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.The MACD showed bearish signs on the counters of Finolex Cables, Varun Beverages, Colgate-Palmolive, NMDC, Triveni Turbine, and Elgi Equipments among others. A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.HDFC Bank (Rs 1,965 crore), Kotak Bank (Rs 1,922 crore), SBI (Rs 1,689 crore), RIL (Rs 1,471 crore), Tata Motors (Rs 1,394 crore), BPCL (Rs 1,355 crore), and L&T (Rs 1,348 crore) among others were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with the highest trading turnovers in the day.Tata Steel (Shares traded: 3.1 crore), BPCL (Shares traded: 2.2 crore), SBI (Shares traded: 2 crore), ITC (Shares traded: 1.4 crore), HDFC Bank (Shares traded: 1.3 crore), Tata Motors (Shares traded: 1.3 crore), and Power Grid (Shares traded: 1.2 crore), among others, were among the most traded stocks in the session on NSE.Shares of Jupiter Wagons, Hindustan Zinc, Vijaya Diagnostic, Honeywell, Polycab India, Astral, and V-Guard among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.Shares of LTIMindtree, Berger Paints, Syngene International, Dalmia Bharat, Ramco Cements, Tata Technologies, and Zee Entertainment Enterprises hit their 52-week lows, signaling bearish sentiment on the counters.Overall, market breadth favoured bulls as 2,142 stocks ended in the green, while 1,678 names settled in the red.
