Tech view: Check key levels on Sensex, Nifty as trend remains indecisive

Domestic market has been remained non-direction lately, particularly after the recent speeches of the US Federal Reserve Chairman presenting no clear signals of easing interest rates. In his latest speech, the Fed Chairman Jerome Powell stated stabilizing prices requires tough decisions that can be unpopular politically. 

Meanwhile, the BSE Sensex and Nifty 50 are trading broadly in 2,000 points and 550 points, respectively. The BSE Sensex is trading in the range is 61,500 to 59,500 levels, while Nifty 50 has a range of 18,300 to 17,750.

The overall sentiment towards the market has remained indecisive and ambiguous, with market participants waiting for a clear direction. Either side trend, out of the broad range, could assist trading community to take suitable resolution towards their investments ahead of the Budget 2023. 

The BSE Sensex slipped 340 points or 0.57 per cent to 59,765, while Nifty 50 declined 90 points or 0.50 per cent to 17,805 breaching sentimental mark of 17,800 in the intra-day deals on Tuesday. 

Here’s the technical outlook to help you understand the current scenario and the likely trend to expect when the indices break out of their narrow range:-   

S&P BSE SENSEX

Outlook: Either side move could steer identical sentiment
 

The BSE Sensex is trading within the key moving averages of 100-day moving average (DMA) and 50-DMA placed at 60,182 and 61,512 respectively. While the index has experienced swings outside this range on intra-day deals, it has not decisively broken these moving averages. The broad trading range stands between 61,500 to 59,500 levels. 

A breakout outside this range could present a clear direction of the next move ahead of the Budget 2023, assisting the investor community, which at the moment senses anxiousness.  An up move over this range could send Sensex towards 62,500 to 63,000 levels, while a breakdown beneath 59,500 may trigger downside to 57,000 level, which is the next cushion for the medium-term outlook. CLICK HERE FOR THE CHART

NIFTY50

Outlook: Breakout of the either side of range would determine the next trend

Nifty is trading in a broad range of 18,300 to 17,750 levels. And either side move outside of this range would determine the next course of action. Key moving averages are aligned nearby this range, providing crucial supports. The 50-DMA is at 18,295 and 100-DMA exists at 17,900 levels.

A breakout or breakdown could trigger fresh rallies in the same direction. If the index surpasses 18,300 levels, the positive rally would extend to 18,500 – 18,700 levels. However, if the bearish sentiment takes over the market by negating the lower level of 17,750, the trend would see index slipping to 17,400. CLICK HERE FOR THE CHART

NIFTY FMCG

Outlook: Breakout above 44,735 

The Nifty FMCG index is struggling to break through the barrier of the 50-DMA placed at 44,735-mark, as per the daily chart. On the flipside, the index has a support of 43,500, where the last reversal was comprehended in November 2022. An aggressive take over on the hurdle of 50-DMA could spark a rally in the direction of 46,000 levels, while if the index breaches lower support, it could fall to 42,000-mark. CLICK HERE FOR THE CHART

Nifty PHARM

Outlook: Descending Triangle pattern

The index is forming “Descending Triangle” pattern, which if materializes could see bears taking over the charge. The breakdown neckline is at 12,450, with immediate hurdle falling at 12,900 levels. A move beneath 12,450 could spark a negative downside to 12,000 levels. The present candlestick formations are not displaying any positive bias, however if the index defends ground over the neckline, the trend may gradually build bullish sentiment. CLICK HERE FOR THE CHART

NIFTY IT 

Outlook: Positive only above 200-DMA

To revive the upside bias, the Nifty IT index must cross the 200-DMA sited at 29,320 levels. When this happens, the positive bias could see index heading to 31,200, where the next breakout exists.  At the moment, the support for the trend is at 27,800. While the broad chart indicates a “Double Bottom” breakout, the index needs to hold and see accumulation near its significant supports. CLICK HERE FOR THE CHART