The markets continued their southbound journey for the fourth straight week. The Sensex registered a fresh two-year low at 15,479 - down 900 points for the week. The BSE benchmark index witnessed some recovery towards the end of the week, and finished with a loss of 512 points at 15,859.
In the process, it has plunged 11 per cent (1,947 points) in the last four straight weeks.
Metal stocks bore the brunt of selling this week. Jindal Steel, with a loss of nine per cent at Rs 488, was the top loser among the Sensex stocks. Hindalco and Sterlite also tumbled seven per cent each.
Reliance, ICICI Bank, Hero MotoCorp, HDFC Bank, Bharti Airtel, Tata Power, Infosys and ITC were the other major losers, down five per cent each. Coal India, however, gained 3.5 per cent at Rs 309, and Larsen & Toubro added two per cent to Rs 1,266.
The next few days could be very crucial for the Sensex, as a monthly close below 15,775 could spell fresh trouble. The weekly charts indicate support around 15,320. The bias is negative, hence probability of the support breaking is higher.
The NSE Nifty settled with a weekly loss of four per cent at 4,710. It has plunged 12 per cent in the last four weeks. The Nifty has a crucial support around 4,600; a weekly close below this would indicate the next major support around the 4,000-mark.
The momentum oscillators on the weekly and monthly charts indicate that bears are in total control. Pullbacks, if any, are likely to remain short-lived.
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On the upside, the first significant resistance would be around 4,920, above which the index is likely to face stiff opposition around 5,020.
Next week, the Nifty is likely to face resistance around 4,800-4,850. Support will come around 4,620-4,565.