Nifty witnessed a sharp decline during previous week tracking losses in global markets as concerns surrounding US-China trade war and election anxiety, weighed on sentiment.
The index closed lower for the eighth consecutive session to close at 11278 points levels down by 3.7 per cent. Broader markets also witnessed sharp cuts as NSE mid-cap and the small-cap index closed the week lower by almost 3 per cent each.
Nifty breached the lower band of the preceding five weeks consolidation of 11550 to 11850 points contrary to expectations and witnessed extended decline as participants turned cautious ahead of General Election 2019 outcome and escalating trade war tension.
It is being expected that the index will lead to choppy consolidation in the range of 11200 to 11550 points while failure to do so will lead to an extension of decline towards the major support area 11000 to 10900 points in the current week.
The recent consolidation breakdown area of 11550 points would now act as stiff resistance, as per the change of polarity concept earlier support would now reverse its role and act as resistance in coming sessions.
The index has major support placed around 11000 to 10900 points level. The outcome of the general election 2019 will have a significant bearing on the future course of market direction in the long term.