After a day's break, the bears were back in control of the Dalal Street and pulled down the benchmark indices nearly 2 percent as inflation concerns and growth worries came roiled the sentiment on June 10. The Sensex plunged 1,017 points, or 1.8 percent, to 54,303, while the Nifty corrected 276 points, or 1.7, percent to 16,202 and formed a bearish candle on the daily as well as weekly charts. For the week, the index fell 2.3 percent.
"The force with which Nifty has fallen on the last day of the week seems to have dissipated the hopes of a pullback attempt. Moreover, a decent bearish candle, as a follow-through to the preceding week’s Shooting Star kind of formation is acting as some sort of confirmation for the resumption of the down move," said Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia.
A breach of the 20-day simple moving average (SMA), placed at 16,315, strengthens the bearish sentiment. Hence, the Nifty may initially slide down to the recent lows of 15,900 to 15,735, he said.
For the time, the upside shall remain capped at 16,324, whereas a close above the level may signal sideways consolidation, the market expert said