No need to panic! Tech charts say 'all is well' till Sensex holds 54,000

The benchmark indices came tumbling down in Friday's session as taper scare returned to Street following the release of US Federal Reserve's latest policy minutes. The minutes indicate that tapering of bond purchases may start later this year. This triggered a selloff in global equities which extended to Indian markets too. 

Analysts foresee a few choppy sessions in the days ahead for the Indian equity markets. However, they feel that the indices will bounce back after a correction as that could spur buying by new investors. READ MORE

Are tech charts too signalling a rebound in sentiment? Read on.

S&P BSE SENSEX

Likely target: 57,000 and 59,000

Upside potential: 3.50% to 6%

BSE Sensex is trading in the overbought category of Relative Strength Index (RSI) and market participants have become cautious amid significant valuations and strong gains Sensex has achieved since the start of the year. Nevertheless, the strength and momentum continue to dominate the bears. And if the index manages to hold the support at 54,000, the positive outlook will stay a longer duration. Daily charts suggest an immediate rally towards 57,000 and 59,000 levels can be anticipated. CLICK HERE FOR THE CHART

NIFTY50

Likely target: 17,000 and 17,500

Upside potential: 3% to 6%

The Nifty index needs to defend 16,100 levels aggressively to show inherit strength. The momentum and direction have remained highly upward through the year, with significant breakouts resulting in higher gains. The index is heading towards 17,000 and 17,500 and if the key support levels are protected, positive sentiment should continue to grow. Currently, there are not any technical patterns or formations that visualise any major downside, as per the daily and weekly charts. CLICK HERE FOR THE CHART

NIFTYBANK

Outlook: Support stays at 34,000

The Nifty Bank index did conquer resistance at 36,000 levels but failed to witness follow-up buying, according to the daily chart. Nonetheless, the underlying trend is positive and continues to trade on the higher side of the previous consolidation range of 35,900 to 34,000 levels. So, for Nifty Bank, until it hangs on with the support of 34,000 levels, the bearish sentiment may not cripple the medium-term positive outlook. CLICK HERE FOR THE CHART