Last week, Nifty sneaked below its recent swing low of 14,635 on a closing basis. This led to the confirmation of the first sign of trend reversal in the form of ‘lower top lower bottom’ on the daily timeframe chart.

The weekly chart had shown some exhaustion in the previous week as we observed fatigue around the strong resistance zone of 15,380 – 15,500 which is the 161 percent 'golden ratio’ of the entire fall from January 2020 highs to March 2020 lows.

Looking at the price structure, we expect this correction to extend towards 14,200 – 14,000 levels first.

The level of 14,000 would be seen as crucial trendline support and a breach of this would open up further space towards 13,700 – 13,500.

We would be closely observing how the index behaves around 14,000 this week. The short-term tide has turned downwards and the view will remain intact as long as 15,200 is not broken.

On the immediate basis, 14,750 – 14,920 are to be seen as stiff hurdles. The larger degree uptrend is still very much intact.