The market is trading consistently below the key level of 8000. Since the market started on a weak note as the investor was mostly cautious before the BOJ policy rate decision, no strength was visible at any point of the week. This being a pivotal level for the market gives clear indication that it bears who are in full control for the market. Staying above this level we expect the market to recover but as seen throughout the week market struggle to float above this level, indicating weakness. The market ended the week at 8000 (as on 15:40 IST) down by 146 points on weekly basis.

The large range candlestick bar in the weekly chart is indicating that the market sentiment is very negative and any short-term pullback is attracting additional selling. It seems the market will struggling to move above the key level above 8000.  If this is the case we expect the market to find downside momentum.

However, We believe the low market posted at 7950 is strong support zone and will provide strong support.  As such we recommend using short-term correction towards 7950 to see as a buying opportunity.

Market movement next week is largely depend on global market trend and trading activity of FII and DII. Globally the data like US Unemployment Claims and Crude Oil Inventories data scheduled to release next week is going to be key. Domestically the next week Foreign Reserves data and External Debt Q3 data is scheduled to release.

Key support from medium-term perspective is at 7650 and Resistance is at 8100 level.