The markets are on the verge of break-down, as the Nifty chart clearly indicated that the index is facing stiff resistance around the 200-day DMA. The current 200-day DMA is hovering around 3,396, the index needs to sustain above this for the upmove to restart.
However, failure to do so, could see the index test its short-term (20-days) moving average at 3,190, and a deeper fall could see the index drop to the mid-term moving average of 2,935.
Today, the index is likely to face resistance around 3,355-3,365-3,372, while support on the downside could be around 3,305-3,295-3,288.
The Sensex, too, just like Nifty is struggling at higher levels. However, the index has considerable support around 10,620-10,500. But, in case the 10,500-level breaks then the index is likely to see a steeper fall towards the 9,700 level.
Today, the index may face resistance around 10,940-10,975-11,015, while support on the downside will be around 10,659-10,655-10,620.
