Are the markets entering a consolidation phase? Here's what charts suggest

Markets started the first trading day of August 2020 lower, with the S&B BSE Sensex slipping over 400 points in intra-day deals. The broader Nifty50, on the other hand, slipped below the crucial 11,000-level, and was trading at 10,978 level, down 95 points or 0.86 per cent around noon deals on Monday.

Here are the key levels you should keep a tab on as regards the frontline indices.

S&P BSE SENSEX: This index is witnessing selling pressure above 38,500 mark. That said, the 200-DMA remains a support level at 36,900. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) have made negative crossovers, an indication of a weak trend. For a reversal, Sensex needs to close decisively above 37,800 levels to infuse a positive sentiment. Till then, the weakness may test the support of 200-DMA. CLICK HERE FOR THE CHART
 
NIFTY50: After the last close, the index has seen an accelerated sell-off, which was last visible in the February F&O series. On the daily chart, a follow-up selling pressure indicates a rally towards the lower rising trendline at 10,900 levels. The 200-days moving average (DMA)  is located at 10,858 levels, another key support level. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) have formed a negative crossover, signalling a bearish view. CLICK HERE FOR THE CHART
 
NIFTYBANK: After breaching the lower rising trenline around 22,300 levels, the index is now exhibiting some selling pressure on every upside. It did manage to conquer recent high of 23,000 levels before the monthly derivative expiry, but failed to cross the trendline, the daily chart suggests. Going forward, 21,100 becomes the closing basis support for the Nifty Bank index. A breach on the downside may see volumes rise and an increas in selling pressure that can take the index towards the 20,000 mark. CLICK HERE FOR THE CHART
 
NIFTY PHARMA: The big breakout on the monthly chart is pushing this index higher. This suggests buyers are getting interested and downside seems to be capped for now. The overall trend looks promising with index heading towards 12,000 mark. The medium-term support remains at 10,500 levels. Although the RSI has entered an overbought condition, as per daily chart, the price is not showing any weakness. Likewise, MACD is indicating the positive direction with a crossover above the zero line. CLICK HERE FOR THE CHART

NIFTY IT: The daily chart indicates a positive bias with a cross of 50-DMA with 200-DMA. A key technical indicator, the RSI, is trading in an overbought condition with the index scaling new highs. This suggests an inherent strength in the index itself. Until 17,500 level is held on a closing basis, the index should see fresh addition in volume with a rally towards 18,300 mark. CLICK HERE FOR THE CHART