The Sensex has given a sell signal on the weekly Fibonacci charts, hence the bias is likely to remain bearish as long as the BSE index sustains below 20,455-odd levels.
The BSE index has also broken its monthly S1 – support – at 20,425, which too can now act as an resistance.
On the downside, the Sensex can now look to test the monthly S2 and S3 – at 20,195 and 19,960 – respectively.
The BSE index will need to sustain above 20,425-odd levels, for any hopes of a bounce back in the remainder of the month.
As per the daily Fibonacci charts, on Wednesday, the Sensex may seek support around 20,160-20,120-20,080, while face resistance around 20,405-20,440-20,480.
The NSE Nifty is on the verge of breaking below the lower-end of the Bollinger Band on the daily charts.
A break below the Bollinger Band, would strengthen the bears, and we may witness accentuated selling pressure in the markets.
However, the NSE index has near support around 5,975-odd levels, which is the 50-DMA (Daily Moving Average).
Break of 5,975, can trigger a fall towards the 200-DMA at Rs 5,860.
Key momentum oscillators like the ADX index and the daily Stochastic Slow are entering oversold region, hence one should not be aggressive sellers at lower levels.
However, one needs to wait for a diversion or signs of positive divergence, before turning buyers at lower levels.
Today, the Nifty may seek support around 5,980-5,970-5,955, while face resistance around 6,055-6,065-6,080.
Stocks with high open interest
Aurobindo Pharma open interest has reached 69 per cent.
Following is the list of stocks with open interest.
Scrip Name OI %
Aurobindo Pharma 69.53
Indiabulls Real Estate57.45
GMR Infrastructure 50.39
United Spirits 49.40
Wall Street ends flat
The US market ended on a flat note on Wednesday. The Dow Jones was down 32 points at 15,750, while the day’s low of 15,708. The Nasdaq was flat at 3,919.
The Indian ADRs ended mostly in red.
Sesa Sterlite cracked 4.7 per cent to $ 11.79. Tata Motors plunged 2.8 per cent at $ 28.46.
ICICI Bank tanked 2.5 per cent at $ 32.92. HDFC Bank tumbled 2.2 per cent at $ 32.17.
MTNL was unchanged at $ 0.43.
On the other hand, Wipro advanced 0.5 per cent at $ 11.19.
Dr.Reddy’s was flat at $ 39.15.
Asian market drops in early trade
Asian markets are trading in negative zone this morning.
The Hang Seng index has tanked 1.5 per cent at 22,550.
The Shanghai Composite index has tumbled over a per cent at 2,104.
The Taiwan Weighted index has shed 0.5 per cent at 8,154.
The Singapore Straits index has declined 0.3 per cent at 3,170.
The Nikkei index is trading on a flat note at 14,575.
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Stock Market Trend Chart Check: Bias bearish below 20,455