So far, the week has belonged to the bears, as the domestic market remained under pressure during the first three sessions of the week.
Nifty registered a new lifetime high of 12,430 on Monday and nosedived to 12,100-mark in the next couple of sessions. However, a decent recovery on Thursday helped the index recover some of its losses.
At this juncture, Nifty is trading with a cut of 1.40 percent, whereas Nifty Bank index has lost 1.86 percent during this week.
We have been constantly reiterating our view that on the upside, 12,400–12,500 could be a supply zone since that is the placement of a rising trend line.
Also, there was a negative divergence in the weekly and monthly RSI of Nifty, so we witnessed a selloff in the markets.
Nifty has found temporary support near 12,100–12,040 zone, which is the placement of a rising trend line.