Nifty can hit 9,200 mark if selling intensifies; 33,400 crucial for Sensex

For Nifty, a continuous gap-down sessions have dampened the upward move

Tracking global peers, Indian equity markets, too, slid on Thursday with the benchmark indices S&P BSE Sensex and NSE's Nifty50 entering the bear market. A market is said to enter bear territory if it corrects 20 per cent from its recent high.

Meanwhile, Wall Street stocks plunged on Wednesday, with the Dow  confirming a bear market for the first time since the financial crisis after the World Health Organization called the coronavirus outbreak a pandemic.

All three major US stock averages ended the session sharply lower, with the benchmark S&P 500 and Nasdaq composite index  both about 19% below their Feb. 19 record closing highs. READ MORE HERE

In commodity markets, oil prices plunged about six per cent Thursday after US President Donald Trump announced a 30-day ban on all travel from Europe to the United States over the coronavirus pandemic. West Texas Intermediate slipped 6.2 per cent to $31 a barrel while Brent crude was off 5.8 per cent at under $34 a barrel. READ MORE HERE

Here's a look at what tech charts indicate for Sensex, Nifty and Nifty Bank for the coming sessions.

S&P BSE SENSEX: The support of 33,400 seems to be the deciding level for a major bearish trend. Till this level is held, one can expect sharp recovery that can revive the positive sentiment. For a trend to reverse completely, the Sensex needs to close with strong volumes above 33,400 mark. On the other hand, if 33,400 gets breached, then the scenario may see massive selling pressure driving the index towards 31,000 levels. CLICK HERE TO VIEW CHART

NIFTY 50: The continuous gap-down sessions have dampened the upward move. Such weakness shows prolonged negative outcome. However, for a reversal to take place, the index needs to show stability in the range of 9,900 – 9,850 levels. Thereafter, a gap-up session may show some recovery. If the index breaches 9,850 -9,800 levels, then this weakness may see index touching 9,500 levels and then 9,200 levels if the selling pressure intensifies. CLICK HERE TO VIEW CHART

NIFTY BANK: With the index nearing 200-weekly moving average (WMA) located at 25,186 levels, a rebound cannot be overlooked. That said, the support remains at 24,200 where the index took support in late 2018 showing the relevance of 100-WMA. Considering this, if the index fails to recover and breaches 24,200 on closing basis, then further downside may see severe sell-off leading towards 22,000 levels. CLICK HERE TO VIEW CHART