Tech view: Watch out for support near recent lows

Shakeout in global markets led to a larger-than-expected fall in Wednesday trading sessions. Owing to the huge fall, downward momentum indicators have now strengthened. It would be interesting to see if the Sensex holds its recent low of around 17,300 today.

For the charts to turn bullish, one needs to get an exact amount of up move today. Yesterday, the index tumbled to a low of 17,345, and finally settled with a loss of 311 points at 17,380.

Realty majors led the losers list - Jaiprakash Associates slumped 4.5%, while DLF tumbled over 3%. Heavyweights Reliance and Tata Steel dropped 4.2% and 3.5%, respectively. ICICI Bank, Hindalco and Tata Power were the other major losers. Sun Pharma, however, gained 1.5% at Rs 1,622.

Today, the Sensex is likely to seek support around 17,265-17,230-17,195, while the index may face resistance around 17,495-17,530-17,565.

The NSE Nifty moved in a range of 106 points, before settling with a loss of 92 points at 5,215.

The Nifty is close to its lower end of the bollinger band, which is at 5,190. Further down, the index is expected to find support around its medium-term (50-days) moving average at 5,152.