The index is consistently trading below the significant moving averages on the daily chart, which is 50-day moving average (DMA), 100-DMA and 200-DMA located at 3,125, 3,316 and 3,414, respectively.
The immediate support comes in at 2,831; its-200 weekly moving average (WMA). The falling trend line at 3,040 may act as resistance, as per the weekly chart. CLICK HERE TO VIEW CHART
Tata Steel: The stock has corrected nearly 37 per cent from its high of Rs 732, hit in January last year. It is trading below all the major moving averages such as 50-DMA, 100-DMA, and 200-DMA. Trades below the said moving averages have further weakened the recovery sentiment, the chart suggests. The RSI (Relative Strength Index) has entered the oversold region of 30 levels. The moving average convergence and divergence (MACD) is trading below zero line in a negative crossover. The support for the stock comes in at Rs 421 and resistance at Rs 510 as per the weekly chart.
SAIL: The stock is trading below its 200-WMA of Rs 60 with every rise witnessing selling pressure. The recent highs of Rs 71.10, Rs 82 and Rs 91.10, witnessed on weekly charts have become resistance levels for the medium term. The overall trend remains weak, as the scrip is heading towards their earlier buying levels of Rs 35 – Rs 34 witnessed in 2018 and 2013, as per the chart.
Jindal Steel: The scrip in the recent past had managed to conquer 200-DMA in September last year; however, it failed to regain the follow-up buying that resulted in loss of momentum and weakening of bullish sentiment. The current levels of Rs 137.70 are trading below 50-DMA and 100-DMA, respectively.