NIFTY Daily Timeframe Analysis & Weekly Outlook

Technical Analysis:

• Current Trend: NIFTY is experiencing a sharp pullback after a breakdown from its recent falling wedge pattern.
  
• Support Levels: The index is approaching 22,500-22,400, a crucial demand zone where it may attempt a bounce.
  
• Resistance Levels: Any recovery will face resistance around 23,000-23,200, followed by a major resistance at 23,500.
  
• Pattern Analysis: A double-bottom formation is visible around the recent lows, which could indicate potential recovery in the coming sessions.
  
• Volume Analysis: Selling pressure is moderate, suggesting market participants are cautious rather than panic selling.
  

Fundamental Analysis:

• Macroeconomic Outlook: Global uncertainties and inflation concerns continue to impact sentiment.
  
• FII & DII Activity: Foreign Institutional Investors (FIIs) have been net sellers, while Domestic Institutional Investors (DIIs) are accumulating selectively.
  
• Sector Strength: Defensive sectors like FMCG & IT are showing resilience, while banking & auto stocks face some pressure.
  
• Earnings Season Impact: Many large-cap companies are still to report results, which may trigger short-term volatility.