Mumbai: The markets got knocked-off on Tuesday on the back of negative global cues amid rising cases of coronavirus worldwide. Overnight the US markets fell sharply from the highs of the day as select states of the US announced curbs to limit the spread of the novel pandemic Covid-19.
The BSE benchmark index, the Sensex, opened 170-points lower at 36,517, and drifted lower as the day progressed. By mid-noon deals, the BSE index had dropped to a low of 35,877 – down 816 points from the previous close. Thereafter, some buying in select stocks helped the BSE index recoup some of its losses. The Sensex finally ended the day with a loss of 661 points at 36,033.
Among the Sensex 30 stocks, Axis Bank and IndusInd Bank slumped over 5 per cent. Maruti, PowerGrid, Bajaj Finserv, SBI, HDFC, Kotak Bank, NTPC, ICICI Bank, TCS, Mahindra & Mahindra, HCL Technologies, HDFC Bank and ONGC slipped 2-4 per cent each. Titan and Bharti Airtel, however, bucked the trend and finished with modest gains.
After giving a mixed signal on the first this trading week, the BSE Sensex has now given a clear sell signal. The bias for the remainder of the week is likely to remain negative as long as the BSE index remains below 36,460-odd level. As per the monthly Fibonacci chart, the Sensex has near support around 35,650, below which the BSE index can slide all the way towards 34,900-odd level.
Also Read: Market Outlook: Nifty likely to make a decisive move soon
As per the daily Fibonacci charts, on Wednesday, in case of an up move the BSE Sensex is likely to face resistance around 36,285-36,365-36,440, and in case of a down move, the BSE index may seek support around 35,780-35,700-35,625.
The NSE Nifty was due for a decisive move, which took place today. The NSE index was struggling to cross the 200-DMA (Daily Moving Average) for the last few trading sessions, and has now corrected sharply. The NSE index may now seek support around the 20-DMA at 10,470-odd level and then re-start its journey towards the 200-DMA. The markets still remain in buy on dips mode, and the ongoing phase can be termed as a correction.
Among the key momentum oscillators on the daily charts, the Slow Stochastic has turned clearly negative, hence we may see downward pressure in the near term. The DI (Directional Index) remains positive and the MACD (Moving Average Convergence Divergence) continues to remain inconclusive. The 14-day RSI (Relative Strength Index) has corrected sharply from near overbought levels.
Disclaimer: The views expressed in this article are personal and for information purpose only, it does not advocate any buy or sell /recommendation.
