Sensex Tanks Over 1,400 Points This Week So Far; Where’s the Next Support?

  • Stock Market News
Sensex Tanks Over 1,400 Points This Week So Far; Where’s the Next Support?
Credit: © Reuters.

The broader markets seem to have gotten nervous for the last 3 trading sessions. Firstly, the higher-than-expected US CPI data of 3.5%, against the forecast of 3.4% jittered the global markets as investors now have to wait a little longer to see rate cuts.

As the market took the hit, another out-of-syllabus event kicked in - the escalating tensions between Iran and Israel. None of the nations are looking to step back and both are seemingly preparing themselves for a full-fledged war. Even the US is failing to mediate the talks between them.

However, it is also to be noted that these war-like situations have a temporary impact on the markets as we have seen with Russia-Ukraine, Israel-Hamas and some provocative moves by China against Taiwan. Despite all these global tensions, the markets were able to scale to an all-time high.

Coming back to Sensex , from the record high of 75,124, the index has lost over 2,256 points in a mere 4 trading sessions. This is quite a sharp fall but the broader trend is still not negative. Just like Nifty 50 has strong support around 21,700 - 21,800, Sensex also has a good buying zone around 71,600 - 71,700.

The trend is also not too bullish after such a steep decline in a short span of time especially when the nearest support of 73,500 has been breached. Just like Nifty 50, Sensex is also expected to trade rangebound from here.

This next support is expected to keep the index from falling, in case these rates come on the screen in the near future. As of 2:30 PM IST, the price action has formed a perfect Doji candlestick pattern on the daily time frame which could be a sign of a probable reversal. It is also to be noted that there is still one hour left before the session closes and the pattern could easily change.

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X (formerly, Twitter) - Aayush Khanna

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