Nifty has formed a bearish engulfing pattern on the weekly chart. A Doji pattern followed by a bearish engulfing pattern is likely to trigger a very sharp correction in the market. The weekly RSI is in bearish crossover and falling. However, on the daily chart, a piercing pattern has formed which is a bullish pattern. Therefore, a pullback can't be ruled out from the current level. On the higher end price may move towards the 15000. Where on the lower end 14400 is likey to act as initial support.
Markets posted a wild swing during the week with both Nifty and Bank Nifty index witnessing a sharp recovery in the Friday’s session after taking a nose dive during the opening part of the week. Bank Nifty index outperformed the Nifty index by ~1.75% with both the indices closing the week ~3.5%/1.75% lower. However, during the closing part of the week, both the index future saw short covering as the open interest trended lower along with a sharp rise in the underlying price. FIIs index futures long/short for the March series continued to hover around the 1.5x level, marginally in the favour of the bulls. On the options front (March 25, 2021 expiry), Nifty 15000CE and 14300PE option strike price have witnessed fresh writing, hinting a formation of a ceiling level & the floor level for the index around the mentioned strike price for the March series.