Markets hit record highs in the week ended June 23 amid heightened volatility, but amid widespread concerns over global issues, including China’s growth outlook, warming UK CPI inflation data, Federal Reserve Chairman Jerome Powell’s hawkish comments, etc., failed to sustain at a high level. Bank of England surprise rate hike and monsoon delay.

The BSE Sensex touched a new record high of 63,601.71 on June 22, while the Nifty was just one point away from its all-time high of 18,887.60.

For the week, the BSE Sensex shed 0.63% or 405.21 points to end at 62,979.37, and the Nifty50 shed 0.85% or 160.5 points to end at 18,665.50.

The BSE large-cap, mid-cap and small-cap indices fell 1% each.

All sector indices were down, with Nifty Media down 3.6%, Nifty Metal down 3%, Oil & Gas, FMCG and Real Estate down 2% each.

The BSE small-cap index fell 1%, dragged down by IIFL Securities, Udaipur Cement Works, Future Consumer, IDFC, Aptus Value Housing Finance India, Manaksia, Aegis Logistics, Mishtann Foods, MPS, Reliance Power and Ador Welding.

On the other hand, shares of Antony Waste Handling Cell, Subros, Ddev Plastiks Industries, DMCC Specialty Chemicals, HPL Electric & Power, Sintex Plastics Technology and LG Balakrishnan and Brothers rose 23-32%.

During the week, foreign institutional investors (FII) made no significant contribution, but domestic institutional investors (DII) bought shares worth Rs 1,693.08 crore.

The Nifty has been weak recently, falling for two consecutive days. On smaller time frames, the index slipped further. Also, the relative strength index (RSI) shows negative divergence, indicating weakening bullish momentum.

From the point of view of the support level, there is obvious support at 18,500 points. The index may fall towards 18,200 points if it falls below this level. On the other hand, there is resistance at the high end of the index at 18,800 points.

Nervousness continued to hang over markets as the Federal Reserve said it would raise interest rates twice this year, stoking concerns about slowing global growth. In addition, heightened concerns about China’s growth prospects and lower demand for crude oil were negative catalysts for investors to avoid risks in the stock market. A sharp sell-off in metals, oil and gas and power stocks dragged the Sensex below the 63,000 mark after hitting fresh highs this week. Technically, the Nifty has formed a double top pattern on the daily and daily charts, and a bearish candle has also formed on the weekly chart, which is generally bearish.

For traders, the 20-day SMA (Simple Moving Average) or 18,650 will act as a sacred support level. If the index trades above this level, a retest of the 18,880 level and a rise to 19,000 are likely. Below the 20-day moving average or 18650, the market could slip to 18,500-18,450.

Bank Nifty has formed a lower top pattern and is currently trading around the 50-day moving average. For Bank Nifty traders, the 50-day moving average or 43,500 will act as a key support, above which a quick pullback to the 20-day moving average or 44,000-44,300 is likely. On the other hand, below the 50-day moving average or 43,500, it could slip to 43,300-43,000.

On June 23, the Nifty fell for the second consecutive session on negative global factors. At the close, the Nifty was down 0.56%, or 105.8 points, at 18,665.5. The broader market index fell more than the Nifty despite the earlier decline falling further to 0.38:1.

Global stocks fell on Friday, extending losses for the week and heading for their worst week since March, as traders worried that central bank efforts to curb sticky inflation would lead to a recession and strengthen the dollar.

The Nifty formed a bearish dark cloud cover pattern on the weekly chart after losing 0.85%. A quick recovery and surpassing all-time highs in the short term may be difficult. Nifty will likely find support in the 18,459-18,555 range, while 18795 may provide resistance for gains in the near term.