Will Sensex see a relief rally or extend fall this week? 76,300 remains key

Technical chart shows that as long as the BSE Sensex holds 76,300 on a closing basis, the market can hope for a relief rally; which can get stronger on break above 78,150.

Last week, equity benchmark indices ended in the negative zone for the second straight week amid bouts of volatility, as bulls attempt to defend the 23,000-mark on the Nifty 50.  The BSE benchmark - Sensex 30 hit a low of 76,250, and ended the week with a loss of 760 points at 76,619. The Nifty hit a low of 23,047, before signing off the week at 23,203.  IT shares were a major drag on the benchmark indices post Q3 results. HCL Technologies tumbled over 10 per cent. Infosys plunged nearly 8 per cent, and Wipro shed 6 per cent. TCS and Tech Mahindra were down around 3 per cent each.  Among others, Mahindra & Mahindra, Trent, Axis Bank, Hindustan Unilever, Dr.Reddy's Labs and Apollo Hospitals declined 3 - 6 per cent.  On the positive front, Hindalco rallied over 7 per cent. NTPC, HDFC Life, Coal India, Reliance Industries, Adani Ports, Maruti Suzuki, SBI Life Insurance and Bharat Electronics gained 4 - 6 per cent each.  Outlook for the week - Jan 20 - Jan 24, 2025.  BSE Sensex  Current Level: 76,619  Support: 76,350; 76,200; 76,085  Resistance: 77,030; 77,155  Going ahead, this week, the recent low around 76,300 levels holds the key for the Sensex. As long as the BSE benchmark manages to sustain above it on a daily closing basis, market participants can hope for a relief rally to emerge.  The weekly Fibonacci analysis suggests a likely trading range of 75,960 - 77,280 for the BSE Sensex. Interim support for the Sensex is placed at 76,350 - 76,200 - 76,085 levels; whereas resistance on the upside can be expected around 77,030 - 77,155.    In case, the Sensex breaches the lower end of the trading range, it can extend the fall towards 75,760 - 75,200 levels. On the upside, sustained trade above 77,000-mark can see the BSE benchmark jump towards 78,150; above which the market may witness some short-covering.  NSE Nifty  Current Level: 23,203  Support: 23,000; 22,880  Resistance: 23,600  Technically, the bias for Nifty is expected to remain weak as long as the NSE index remains below the 20-DMA (Daily Moving Average), which stands at 23,600 levels. CLICK HERE FOR THE CHART  On the downside, the Nifty seems on course to test the 20-MMA (Monthly Moving Average) at 22,257; below which a test of 21,500 levels seems likely. Key momentum oscillators on the daily and weekly chart are still in favour of the bears. Interim support for the index can be expected around the 23,000-mark and 22,880 levels.