Sensex may test 57,000-odd levels by year end, Fibonacci charts show

The BSE index declined 5.3 per cent from its recent peak of 62,245 to a low of 59,105 in intra-day trades on Friday

Following Thursday's heavy sell-off, the BSE Sensex on Friday morning extended the fall to a low of 59,104 amid valuations concerns and persistent selling by foreign funds. In the process, the BSE index broke its crucial support on the quarterly Fibonacci charts.

As per the quarterly Fibonacci charts, the BSE benchmark index can now slide towards 57,250-55,850 odd levels by the end of December 2021. On the upside, the Sensex is likely to face considerable resistance around the 61,000-level, with upside likely to be capped around 62,400-odd levels for the rest of the year.

As per the yearly charts, the BSE index has a near support at 58,870, below which 56,250 seems imminent.

The monthly Fibonacci charts, indicates a likely trading range of 57,600-62,180 for the Sensex in November, with intermediate support around 58,500-58,050, and resistance around 60,700-61,300.

The NSE Nifty on the other hand, had broken its short-term support, the 20-DMA in trades on Thursday. The 20-DMA for the index is now around 18,030-odd level.

The Nifty in early trades on Friday dipped to a low of 17,613, which was close to the 50-DMA around 17,570-odd levels, and then pulled-back. In the process, the NSE Nifty had shed 5.6 per cent from its recent life-time high of 18,604, in just nine trading sessions, and the index was poised to log its second staright weekly loss.

As per the daily charts, as long as the NSE index holds above the 50-DMA, the index can attempt a pull-back towards 18,100-18,200 odd levels. On the flip slide, sustained trade below 17,600-level can trigger a fall towards 16,800-odd levels, which also conincides the 20-WMA (Weekly Moving AVerage).