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Nifty50 started the week on a flat note and extended positive momentum in the initial half, but selling pressure at higher levels dragged the index towards the lower to end the week on a negative note. The Nifty50 closed at 11,419 with a loss of 133 points for the week ended July 19.

On the weekly chart, the index has formed a bearish candle forming lower High-Low compared to the previous week indicating negative bias. On the daily chart, Nifty has decisively broken down its past eight sessions Up-sloping Trendline support on a closing basis which signals further weakness.

The chart pattern suggests that if Nifty crosses and sustains above 11500 levels then it could upward momentum which would take the index towards 11580-11700.

However, if the index breaks below 11400 levels it would witness selling which would take the index towards 11320-11260. The Nifty is trading below 20, 50 and 100-day SMA's which are important short term moving average, indicating negative bias in the short term.

The Nifty continues to remain in a downtrend in the short term, so buying near to major supports on dips continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 11550-11270 with a negative bias.