5,960 is crucial support level

The markets, as expected, moved in a range with a negative bias. As a result, the Sensex ended 134 points lower at 20,032. Earlier in the week, the index surged to a high of 20,452, but selective profit-taking, rollover jitters and fears of a rate hike saw the index plunge to a low of 19,769.

Among Sensex stocks — Mahindra & Mahindra rallied 4.5 per cent to Rs 732. Maruti, ICICI Bank and Cipla gained two-three per cent. Wipro slumped 6.5 per cent to Rs 420. Tata Steel, NTPC, Jaiprakash Associates, DLF, BHEL, ONGC and Infosys declined three-four per cent.

Going ahead, last week’s lows are going to be crucial for the markets. In case of some panic-selling, the index may dip to around 19,600-19,500. One can expect strong support around these levels. As long as this level holds, the possibility of new highs in November will remain high.

The NSE Nifty moved in a range of 214 points. The index touched a high of 6,151 and a low of 5,937 and finally settled with a loss of 48 points at 6,018.

Going by the weekly charts, the index has considerable support around 5,940-5,885, while resistance on the upside will be around 6,100-6,150.

The monthly charts indicate the trend will get stronger after the index crosses 6,150.

The daily chart indicates fresh weakness on a close below 5,960. Intra-day dips could see the index take support around 5,875 (medium-term moving average). On the other hand, given the sideways consolidation, weekly charts offer hope of a bounce-back.