Angel Broking IPO opens today: Here's what top brokerages recommend
Business Standard
Web Exclusive

Market sentiment to remain strong till Nifty stays above 10,750-10,800

The domestic market continued to trade weak amid a global sell-off triggered by concerns about rising Covid-19 cases and news reports on suspicious transactions involving international banks.

Topics
stocks technical analysis | Market technicals | Stock market crash

Avdhut Bagkar  |  Mumbai 



markets, market, bull
The benchmark S&P BSE Sensex on Monday tumbled 812 points, or 2.09 per cent to settle at 38,034 levels.

Extending their Monday's decline, the benchmark indices were trading over 0.5 per cent lower in the morning deals on Tuesday. The domestic market slumped on Monday amid a global sell-off triggered by concerns about rising Covid-19 cases and news reports on suspicious transactions involving international banks. The benchmark S&P tumbled 812 points, or 2.09 per cent to settle at 38,034 levels while NSE's Nifty fell 254 points, or 2.2 per cent, to end at 11,250 — the biggest fall in three weeks. READ MORE

"For the Indian market, we have slavishly followed the global upwards and would likely follow on the way down, too, especially given it has all been liquidity-driven. Moreover, the recent tailwind of the weaker dollar may reverse the short-term as investors head back to safe havens," wrote Andrew Holland, chief executive officer at Avendus Capital Alternate Strategies. READ HIS VIEWS HERE

So, was the Monday's market crash just a one-off incident, or are more corrections in the offing? Let's take a look at what technical indicators suggest for Sensex and Nifty.

S&P BSE SENSEX: The “Golden Cross” formation at 38,900 levels indicates a positive sentiment from a medium-to-long term perspective for the index despite the fall seen in the past few sessions, as per the daily chart. That said, the immediate trend remains weak that can accelerate if the index continues to trade below 37,700 levels. If that happens, the maximum downside one can visualise is towards the earlier breakout and support range of 37,000 - 36,800 levels. The Relative Strength Index (RSI), which is currently hovering at 39, is set to move towards the oversold territory of 30. This can result in a likely recovery as it is nearing the oversold condition. CLICK HERE FOR THE CHART

NIFTY50: A clear breakout above 11,750 has pushed the index towards the higher levels inducing a “Golden Cross” between the 50-day moving average (DMA) with 200-DMA. This strongly suggests that the index can move up from a medium-term perspective. The sentiment is likely to stay strong till the index defends the crucial support range of 10,750 – 10,800 levels. The technical indicators have made negative crossovers. However, till the moving average convergence divergence (MACD) does not breach the zero line decisively, the upside bias may prevail. CLICK HERE FOR THE CHART

TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.

SUBSCRIBE TO INSIGHTS

What you get on Business Standard Premium?

  • icon Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • icon Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • icon Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
  • icon Pick your 5 favourite companies, get a daily email with all news updates on them.
  • icon 26 years of website archives.
  • icon Preferential invites to Business Standard events.

OR


Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Tue, September 22 2020. 10:33 IST

RECOMMENDED FOR YOU

.