@rex_cano
Mumbai: The markets tanked heavily in trades today on account of aggressive profit-taking across the board following the non-stop 10-day rally. The BSE benchmark index, the Sensex, opened with a positive gap of 260-odd points but immediately slipped into the negative zone. The BSE index, thereafter, extended losses as the day progressed and dropped to a low of 39,667. The Sensex finally ended with a huge loss of 1,066 points at 39,728.
Among the Sensex 30 stocks, Bajaj Finance tumbled nearly 5 per cent. Tech Mahindra, IndusInd Bank, ICICI Bank, SBI, Reliance Industries, Bharti Airtel, HCL Technologies, HDFC Bank, Kotak Mahindra Bank and Bajaj Finserv shed 3-4 per cent each. In fact, all 30 stocks, barring Asian Paints ended in the negative zone.
After today’s massive fall, the 40,500-level is now likely to be a key resistance for the BSE index. As per the monthly Fibonacci chart, the BSE index may test support around 39,500-39,160 in the current down move.
As per the daily Fibonacci chart, on Friday, in case of an up move the BSE Sensex is likely to face resistance around 41,250-41,420-40,580. On the other hand, in case of a decline the Sensex may seek support around 39,200-39,040-38,880.
Also Read: Market Outlook: Current rally may be in its last legs; keep an eye on major hurdles ahead
The NSE Nifty nose-dived to a low of 11,661 from a high of 12,025. In the last four trading sessions, the NSE index attempted to break above the 12,000-mark, but failed. The 12,000-mark seems to be a major hurdle for the index in the near term.
The NSE index has seen formation of a longish bearish candle on the daily charts, which indicates that the bears are looking for a comeback. In case of further weakness, the Nifty can slide towards the 20-DMA (Daily Moving Average) around 11,480-odd level.
Among the key momentum oscillators on the daily chart. The Slow Stochastic has given a negative divergence and is now clearly in favour of the bears. The DI (Directional Index) too seems to be converging, while the MACD (Moving Average Convergence Divergence) remains in favour of the bulls. The 14-day RSI (Relative Strength Index) is now in the neutral zone.
Disclaimer: The views expressed in this article are personal and for information purpose only, it does not advocate any buy or sell /recommendation.
