Nifty 50 prediction for the week: Vulnerable to fall more

The Nifty 50, Sensex and Nifty Bank index experienced a sharp decline last week, breaking below their key support levels. The Nifty and Sensex each fell by over 2 percent, while the Nifty Bank index dropped by 1.33 percent. The charts indicate a weak picture, with resistances in place that could limit upside movements. Any rise from the current levels is expected to be capped, as the Nifty, Sensex and Nifty Bank index are likely to fall either from this point or after a brief corrective rise.

Foreign Portfolio Investors sold Indian equities for the second consecutive week, resulting in a net outflow of around $602 million last week, and a total of about $1.38 billion this month. The short-term view suggests that immediate support is in the 23,250-23,200 region. If this support breaks and the index rises above 23,450, a relief rise to 23,700 could be triggered.

However, a break above 23,700 is less likely. The long-term outlook remains bullish, with the Nifty expected to break above 26,500 and potentially reach 28,000 and 30,000. A break below 22,000 would negate the long-term bullish outlook, requiring a strong negative trigger. In the medium term, a strong bounce from the crucial 54,000 support level could propel the Nifty Bank index back to 57,000 and 60,000, and potentially even 65,000 in the long term.