The sentiment weakened further as global markets tumbled ahead of the US Federal Reserve’s monetary policy meeting this week.
Meanwhile, last week the BSE Sensex touched a high of 55,832 early in the week, and thereafter drifted to a low of 54,206, and finally ended the week with a loss of 1,466 points or 2.6 per cent.
The NSE Nifty shed 2.3 per cent to 16,202, and the Bank Nifty dropped 2.2 per cent.
This week, all eyes will be on the US Fed’s two-day monetary policy meeting on June 14 and 15, where investors will track Fed chair Jerome Powell’s outlook on energy prices, inflation and economic recovery.
According to a Reuters poll, the US Fed is expected to hike interest rate by 50 basis points in June and July, with higher probability of a similar rate hike in September.
That apart, Bank of England and Bank of Japan are also slated to take interest rate decisions on Thursday and Friday, respectively.
The Consumer Price Index-based inflation for May will be announced on Monday, followed by Wholesale Price Index-based inflation on Tuesday.
Technically, weekly trend for the Nifty has turned bearish with its 20-Weekly Moving Average slipping below the -.
The broader trend indicates that the index could slide towards 15,800 – 15,300 if the 50-pack index fails to cross 16,900 level.
Against this backdrop, the NSE Nifty may test its support at 16,000-mark, below which the next significant support is at 15,800.
Similarly, the BSE Sensex may swing in a range of 53,300 to 55,300, with support expected around 53,950 and resistance at 55,050.
Among individual stocks, Bajaj Auto will be in focus ahead of its board meet on June 14 to consider share buyback.
Besides, recently listed LIC India and Prudent Advisory will be on investor radar as the compulsory 30-day lock-in period for anchor investors will end on June 13 and June 17, respectively.