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Since the start of this week, Nifty50 has been witnessing high volatility.

The benchmark index on March 17 started the day flat, taking the clues from its global peers. Later on, as the day progressed prices again underwent strong volatility till the mid-session of the day and finally witnessed a smaller degree horizontal trendline breakdown in the intraday chart and closed below 14,750 with a loss of more than one percent from its previous closing.

For the past few trading sessions, the index has been firmly holding above its 21-day exponential moving average (EMA) but due to a brisk sell-off on March 17, it closed below its 21-day EMA on the daily interval, which is mildly negative for the index.

On the weekly chart, this current candle has engulfed its previous week's candle and if the index closes below 14,850, bearish engulfing will be formed on the weekly timeframe which will be a negative signal.

India VIX has currently settled below 21 level on the daily chart, so we can expect a cooling-off in the volatility in the coming trading sessions.

For the past one-month, Bank Nifty has been trading within a consolidation range. On March 17, the banking index witnessed a breakdown of its one-month consolidation and prices also closed below its 21-day EMA on the daily interval.

Nifty50 has given a negative breakdown so every uptick in the index should be utilised for a fresh shorting opportunity.

Nifty will likely face a strong resistance near 14,950 which is capped under a 21-day EMA. On the lower side, support can be seen at 14,400 which is again under the trendline support.