So, will the Sensex and the Nifty be able to hold on to the gains made on Tuesday? Here is what technical charts suggest.
S&P BSE SENSEX:
After witnessing a selling pressure at 50% Fibonacci retracement, the index saw a correction recently. The index needs to cross 32,026 levels, which is its 38.20 retracement level, to regain the upward momentum. On the downside, till 23.60 %, which is 29,570 is held on a closing basis, the upside bias should prevail. As per the price analysis, every upside may observe the selling pressure resulting in an addition of short positions. CLICK HERE FOR THE CHART
The support of 8,670 is crucial for this index. Till it holds the support, one can expect a positive move in the days ahead, as per Fibonacci retracement. That’s said, the upside is expected to witness strong selling pressure till the index is able to take out the upper resistance of 9,400 levels. Going forward, wild swings may not emerge and index might witness consolidation in the broad range during the May series. On the downside, if 8,600 gets breached, then sentiment may turn negative, leading to shorts getting added. CLICK HERE FOR THE CHART
As this index failed to conquer the 22,000 mark consistently. even the 20,000 mark, which is its 23.60% retracement from recent low is acting as a hurdle. The immediate resistance comes at 18,400 and thereafter at 19,200. The subsequent resistances on upside indicate shorts getting build-up resulting in a negative sentiment. The trend remains weak and if 17,000 is broken on a closing basis, then further downside towards a new low may be expected. That said, the recent reversal low was at 16,116 levels. CLICK HERE FOR THE CHART
A strong selling pressure at 200-days moving average (DMA) has resulted in a short build-up. Thereafter, a gap-down close in the range of 28,460 to 28,235 has further strengthened the downward move. The immediate resistance is at 27,250 which is the 50-DMA. This index needs to cross and sustain above the same to rally further. The support remains at 26,250 and any closing basis breach may add more short positions. CLICK HERE FOR THE CHART
This is the only index that shows a positive momentum as per the daily chart. The formation of “Ascending Triangle” pattern has contributed to the upward bias. The breakout above 13,000 levels suggests a possible move towards 14,500 in the coming sessions. However, this may not happen in a hurry. That said, the overall trend remains bullish and any corrective moves may see addition in longs. The support remains at 13,000 and thereafter at 12,400 levels. The Moving Average Convergence Divergence (MACD) has crossed the zero line upward, a sign of an upward rally in the weeks ahed. CLICK HERE FOR THE CHART