Sensex, Nifty in correction mode; Watch out for these key levels

On Wednesday in intra-day deals, the S&P BSE Sensex was down 660 points at 66,935, while the Nifty50 had shed a per cent or 190 points to 19,944.

Domestic equity markets took a sharp U-turn on Wednesday amid fears that Foreign Portfolio Investment flows to India may take a hit in the backdrop of deteriorating India-Canada ties.

Investors also resorted to profit-taking ahead of the US Federal Reserve meet outcome later tonight on interest rates and the forward looking commentary. The US Fed is expected to keep rates unchanged.

That apart, inflatinary concerns back home owing to deficit monsoon and rise in Crude Oil prices also weighed on the sentiment.

At 11:40 AM, the S&P BSE Sensex was down 660 points at 66,935, while the Nifty50 had shed a per cent or 190 points to 19,944. 

Going ahead, these key levels need to be watched closely on the benchmark indices.

Sensex

Key Support: 66,030

The S&P BSE Sensex has shed around 900 points from its recent summit at 67,803. The monthly Fibonacci chart suggests, that the BSE benchmark is likely to find considerable support around 66,030-odd levels, below which the index may seek support around 65,800 - 65,570.

On the upside, the BSE index is likely to rally towards the 68,400 - 68,600 range.

Nifty

Support: 19,680; 19,615

Resistance: 20,300

The NSE Nifty50 index had rallied 5 per cent or 968 points in 11 straight trading session, as the index hit a new all-time high at 20,222 on September 15, 2023. Following the market correction in the last two days, Nifty50 has slipped 1.3 per cent from its peak.

Key momentum oscillators like the 14-day RSI (Relative Strength Index) and the Slow Stochastic have given a negative divergence on the daily chart. The index seems on course to test the 20-DMA (Daily Moving Average) at 19,680-odd levels, below which immediate support for Nifty50 can be expected at its 50-DMA at 19,615. 

The upside for now seems capped around 20,300-level. CLICK HERE FOR THE CHART

Nifty MidCap 150

Support: 14,937; 14,360

Resistance: 15,560

Following its biggest single-day drop in recent times last week, the Nifty MidCap 150 index was seen consolidating. For now, the index seems to be taking support around its 20-DMA, which stands at 14,937. In case break of the same, the index could slip towards its 50-DMA at 14,360, which also coincides with the lower-end of the anticipated trading range as suggested by the Bollinger Bands on the daily chart.

On the upside, the index can bounce back towards 15,560. Break and sustained trade above the same, can reignite a fresh rally. CLICK HERE FOR THE CHART

Nifty SmallCap 250

Support: 12,030

Resistance: 12,600

Even as the he Nifty SmallCap 250 index tests support at its 20-DMA at 12,030, the broader time-frame chart suggests a posibility of sharper correction towards 10,960-odd levels. The upside for the index seems capped around 12,600 levels. CLICK HERE FOR THE CHART