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A 1000-point drop! Sensex can hit 36,400 in the days ahead, charts indicate

The S&P BSE Sensex and the Nifty50 tumbled over 7 per cent each last week – the worst in a decade
Markets have been on a selling spree since the past few weeks as coronavirus fears tightened their grip over countries. Back home, slowing growth and developments in the banking sector added to woes. The S&P BSE Sensex and the Nifty50 tumbled over 7 per cent each last week – the worst in a decade. The fall continued this week with both these indices slipping another 2.2% thus far in the current week.

Here are the key levels you need to keep a tab on.

S&P BSE SENSEX: The index needs to close above 37,700 levels on Friday and one needs to see buying emerge at lower levels. Only then, one can see a revival towards 39,000 levels in the days ahead. On the other hand, a close below 37,700 levels may see a downward correction towards 36,400 in the coming sessions. That said, the overall trend is losing the positive strength seen earlier this year and any sell-off from here may dent the upside momentum completely. CLICK HERE FOR THE CHART

NIFTY 50: The index broke the major level of 11,000 in Friday trade. A cut of nearly 4 per cent in an intra-day shows weakening of an upward bias. Here onwards, 10,600 levels which had seen buying in August 2019, should act as support. On the other hand, 11,400 may act as a resistance level. CLICK HERE FOR THE CHART

NIFTY PSU BANK: The overall trend is bearish for the Nifty PSU Bank index. This bias further gets strengthened as the index trades consecutively below 2,100 levels. A new lifetime low of 1,738 suggests the revival in trend is a remote possibility. Going forward, the index needs to stabilise above 1,900 level to show some stability and sustainability. Until then, staying cautious seems a viable option. CLICK HERE FOR THE CHART

NIFTY BANK: The index has seen buying strength in the range of 27,500 -27,100 levels in the recent past. Only a close below 27,000 should see aggressive selling pressure. That said, to see revival in trend, the rally should conquer 28,200 levels decisively. The next resistance is located at 28,800 levels. CLICK HERE FOR THE CHART



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