Benchmark indices have taken a heavy beating in the last two sessions amid fears that a spike in crude oil prices following attacks on Saudi oil facilities could hurt the economy further. The S&P BSE Sensex on Tuesday tanked 642 points or 1.73 per cent to end at 36,481.09 while the NSE's Nifty50 settled at 10,818, down 186 points or 1.69 per cent. Amid the sell-off, auto and bank stocks have been the worst hit.
S&P BSE SENSEX:
The index needs to cross 37,700 level for the sentiment to turn bullish.
It did try to hold above its 200-day moving average (DMA) in August, but failed to hold on to the gains. Global developments and developments back home have made the sentiment weak and a fall towards 36,000 – 36,200 levels cannot be ruled out, as per the daily chart. Also, the 50-DMA has crossed 100-DMA on the downward sloping channel, which is a negative sign. A crossover with 200-DMA may further dampen the sentiment. CLICK FOR CHART VIEW