"For the Indian market, we have slavishly followed the global markets 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
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
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First Published: Tue, September 22 2020. 10:33 IST