Can Sensex fall below 80,000-mark in July? Here's what chart says

Technical chart suggests that the key monthly support for the BSE Sensex stands at 81,300 levels; break and sustained trade below the same can trigger a sharper fall.

Equity benchmark indices ended near the lows of the week last week owing to selling pressure in IT stocks, after TCS Q1 earnings fell short of market expectations.  The BSE Sensex had hit a high of 82,781 during the course of the week (July 4 - July 8); from there on the index tumbled to a low of 82,442 - an intra-week fall of 1,370 points. The Sensex eventually ended the week with a loss of 574 points or 0.7 per cent at 82,442.  In the process, the BSE benchmark index has now shed nearly 2 per cent or 1,617 points in the last two week, from the calendar year closing high registered on June 27.  On similar lines, the NSE Nifty 50 index has retraced from a high of 25,669. The Nifty settled 205 points or 0.8 per cent lower at 25,150 last Friday.  CATCH STOCK MARKET UPDATES TODAY LIVE  Will the BSE Sensex extend the fall and slide below the 80,000-mark in coming trading sessions? Here's what the weekly outlook as per technical chart suggests. 

BSE Sensex

Last close: 82,500  Downside Target: 78,765  Downside Risk: 4.5%  Support: 81,975; 81,815; 81,650  Resistance: 83,025; 83,185; 83,350  As per the monthly Fibonacci chart, the Sensex is yet to give a decisive signal. The index, however, has dipped below the key initial support, which stood at 82,700 levels. This suggests that the near-term bias could be slightly tepid as long as the Sensex quotes below 83,600 levels.  During the course of the month (July), the major support for the Sensex stands at 81,300 levels. Break and sustained trade below can trigger an accelerated down move towards 78,765 levels, with interim support anticipated around 80,600 levels.  In the week ahead, the Sensex is likely to seek support around 81,975 - 81,815 and 81,650 levels. On the upside, intermediate hurdles for the BSE benchmark index exists around 83,025 - 83,185 - 83,350 levels.  ALSO READ |  TCS stock breaks near-term support post Q1 show, can dip another 5%; charts 

NSE Nifty 50

Last close: 25,150  Downside Target: 24,200  Downside Risk: 3.8%  Support: 24,994; 25,955; 24,720  Resistance: 25,550  Following back-to-back losses, the NSE Nifty 50 index closed below its 20-Day Moving Average (20-DMA), for the first time since June 20. The index is now likely to test near-term trend line support, which exists a shade below the 25,000-mark (24,994); below which immediate support the index is seen at 24,955 levels - its 50-DMA.  Break and close below the same, shall signal a change in trend from positive to negative for the short-term. As such, the Nifty may then potentially extend the fall towards 24,200 levels, with some interim support likely around 24,720 levels. On the upside, the Nifty will need to cross and sustain consistently above 25,500 levels in order to regain strength. 

Nity chart