Market pullbacks may be short-lived, says charts; time to exit?

Market Technical outlook: Sensex, Nifty may witness some bounce back as benchmark quote in oversold zone; chart shows major hurdles at 81,900 and 25,325 levels for these indices.

Market Outlook: Equity benchmark indices have cracked below key support levels following the 5-week losing streak, wherein the Sensex and Nifty have dropped around 4 per cent each from their respective highs. The road ahead is likely to be volatile, with intermediate bouts of recovery given the oversold conditions at present.  Having said that, the broader trend for now remains down, and the benchmark indices - BSE Sensex, NSE Nifty could see lower levels before finding a bottom. Here are the key levels to track on these 2 benchmark indices going ahead.  CATCH STOCK MARKET LIVE UPDATES TODAY 

BSE Sensex

Current Price: 80,600  Likely Target: 78,765  Downside Risk: 2.3%  Support: 80,400; 79,900; 79,500; 79,100  Resistance: 81,100; 81,250; 81,400; 81,900  As per the present chart set-up, the BSE Sensex can potentially slide towards 78,765 levels in the next couple of months. The short-term bias is likely to remain negative as long as the index quotes below 81,900 levels.  In the week ahead, the BSE benchmark may face interim resistance around 81,100, 81,250 and 81,400 levels. Break and sustained trade above 81,900, can open the doors for a potential pullback towards 83,600 levels.  On the downside, intermediate support for the Sensex can be anticipated around 80,400, 79,900, 79,500 and 79,100 levels. 

NSE Nifty

Current Price: 24,565  Likely Target: 23,660  Downside Risk: 3.7%  Support: 24,390; 24,200; 24,050  Resistance: 25,050; 25,325  The NSE Nifty 50 index has been trading below its short-term moving averages - the 20-Day Moving Average (20-DMA) and the 50-DMA for the last six trading sessions. The daily chart shows, that the Nifty now seems on course to test support around its 100-DMA, which stands at 24,390 levels; below which a dip to the 200-DMA at 24,050 seems likely. 

 

  The daily chart shows that the overall bias for the Nifty is likely to remain negative as long as the index remains below 25,325 levels. The short-term moving averages, which coincides around 25,050 levels, are likely to act as near-term hurdles.  On the medium-term time-frame, the Nifty is seen seeking support around its 20-Week Moving Average (20-WMA) which stands at 24,445 levels; below which support the index exists around 24,200 levels in the form of the 50-WMA. The weekly chart suggests, a potential downside risk of up to 23,660 levels for the Nifty.