NSE benchmark, the Nifty 50 index experienced rangebound movement during the truncated trading week

The equities benchmark indices ended a three-week losing streak in an extended trading week on the back of a prebudget rally.

Nifty has formed a perfect Doji candle on a weekly chart. After last week’s 573-point decline, this indecisive candle’s low has become crucial support.

The depreciation of the rupee to an all-time low and other concerns like probability of yen carry trade unwinding and a sharp sell-off in the banking stocks gripped the equity markets.

The equity indices suffered significant losses last week. Nifty declined in all the five trading sessions and registered a 4.77 per cent fall.

The equity benchmark index cleared an important resistance last week and registered breakouts.

Nifty broke out of a sloping channel with a sharp bounce of over 1,088.40 points or 4.68 per cent on Friday and Monday.

Nifty has formed another lower low and closed at the previous weeks low.

For the fourth straight week, the benchmark index registered a decline.

In our earlier columns, we forecasted that the overstretched market may witness a sharper decline.