| If the Sensex is able to hold the 13,780 support this week, the index may attempt to scale the 14,650-level, at least in the immediate future, though there may be some resistance around the gap-down level of 14,585. |
| On the downside, a break of 13,780-level can spell more trouble for the markets with the possibility of the Sensex crashing down to the 11,800-level in the coming months. |
| The 13,780-level is important for two reasons "" other than being the yearly level, the mark is also the 38 per cent re-tracement of the June quarter index swing (of 2,258 points). |
| Last week, the index began on a positive note but could only manage to touch a high of 15,070 (22 per cent re-tracement of the previous week). Post-Independence Day holiday, the index opened with a huge negative gap (416 points) at 14,585, and just could not recover as the global markets went into a tailspin. The index tumbled to a low of 13,780, and eventually ended with a loss of almost 5 per cent (727 points) at 14,141. |
| The NSE index, Nifty, swung in a range of nearly 400 points. The index touched a high of 4394 and a low of 4002 before settling with a loss of 5.2 per cent (225 points) at 4108. |
| The Nifty may drop to 3950-odd levels in case of fresh selling. This week, the index may find support around 3960-3910-3865, while, on the upside, the index is likely to face resistance around 4255-4305-4350. |
| Another key factor to watch this week will be the Nifty's trading close to its 200-DMA (daily moving average), which is placed at 4067. So far this year, the index has managed to bounce thrice from the 200-DMA "" in the beginning of March, in mid-March and at the start of April. If the index remains below the 200-DMA for a long period (say more than three days), one may see more pain in the future. |
Top Section
Explore Business Standard