After having broken some crucial support levels in the last few trading days, the Sensex today may gains backed by positive global cues.
However, the short-term and mid-term trend remains negative with stiff resistance around 8,760-8,900. The short-term trend will change only on a close above 8,900. On the downside, the index is likely to drop to 7,550 this month.
Today, the index may find support around 8,400-8,380-8,365, while face resistance around 8,495-8,510-8,525. Today, the Sensex may extend gains only on strength above 8,525.
The NSE Nifty somehow has still managed to hold the 2,575 (corresponding Sensex level was 8,435) crucial support level mentioned in the weekly report. However, the upside for Nifty seems capped around 2,715-2,765.
Today, the index may face resistance around 2,660-2,665-2,675, while support on the downside may be around 2,630-2,625-2,615.