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Sensex, Nifty need to hold 32,200 and 9,400 levels for next leg of rally

Benchmark indices, S&P BSE Sensex and NSE's Nifty gained ground on Wednesday after Prime Minister Narendra Modi, in his address to the nation post market hours on Tuesday, announced a Rs 20 trillion stimulus package to restart the economy post disruptions caused by Covid-19 pandemic. The PM said the Rs 20 trillion package, nearly 10 per cent of India’s gross domestic product (GDP), would be with the objective of putting money into people’s pockets to spur domestic consumption and demand. READ MORE

Here's a look at how the key equity indices look on technical charts post the stimulus package announcement.

NIFTY 50: With a strong opening today, the support of 9,000 should prevail for the coming sessions. Going forward, 9,400 becomes the breakout level. The index needs to show stability above the same, which would inevitably push the index to higher levels. The overall trend indicates a positive bias and this may get hampered only below 9,000-mark. The Moving Average Convergence Divergence (MACD) is hovering close to the zero line. The stability above 9,400 should assist MACD to conquer the zero line which indicates a confident strength and upward direction.  CLICK HERE FOR THE CHART

S&P BSE SENSEX: This index needs to strongly close above 32,200 to show sustainability. Till then, one can witness selling pressure with volatility.  A closing basis support of 31,000 holds the upside bias. If the index yields a positive close today, one can expect buying momentum to emerge on corrective moves. The MACD has made a negative crossover and a breach of 31,000 may attract bears to enter market aggressively.  CLICK HERE FOR THE CHART

NIFTY BANK: 22,000-mark remains a major hurdle for this index. It did try to conquer in the recent past; however, the selling pressure was exorbitant. The current upside needs to cross the immediate resistance of 20,400 and then 20,800 levels. The overall trend looks positive, but the selling pressure is mounting on every upside. One can look for buying opportunities considering support to be at 18,000 levels. This level holds the major downside, any breakdown thereafter may induce bearish sentiment. CLICK HERE FOR THE CHART

NIFTY AUTO: This index shows “double bottom” formation and a consolidation after the breakout as per the daily chart.  This stimulates a positive bias which may see a strong upside above the horizontal resistance of 5,800 levels. The trend looks bullish and a breakout may see 6,200 to 6,400 levels in the coming sessions. The support remains at 5,400 and 5,200 levels. The MACD is crossing the zero line upward, suggesting a positive strength. CLICK HERE FOR THE CHART

NIFTY FMCG: The daily chart shows a firm resistance at 200-day moving average (DMA). It did try to conquer nearly five times; however, failed to do so. Thereafter, the index lost the upside momentum, breaching 50-DMA at 27,480 levels. The current trend needs to cross 27,400 and furthermore 28,500 to embark the upward direction. The number of times the index closed in the negative zone in the last ten sessions are very high, which is a sign of a weak trend, signalling a cautious view. CLICK HERE FOR THE CHART

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