Sectorally, the Nifty Auto and Nifty Metal indices tumbled over 3 per cent each. The IT index shed 2.3 per cent, and the Nifty Bank was down 1.8 per cent.
In Asia this morning, Japan’s Nikkei plunged 7 per cent. The index has shed 21 per cent in less than a month, from its all-time high of 42,224 hit on July 11, 2024.
The major chunk of the fall has come in the last three trading sessions, wherein Nikkei has shed nearly 15 per cent after the Bank of Japan unexpectedly raised interest rates to 0.25 per cent.
That apart, globally fears of a recession in the US resurfaced after recent macro data showed that the economic growth was slower-than-expected, and the Fed may be late in cutting interest rates. Additionally, earnings disappointment by IT giants – Tesla and Google also weighed on the sentiment.
Dow Jones has declined 2.7 per cent in the last two trading sessions. The S&P 500 has shed 3.2 per cent in two days, and is down 5.7 per cent from its summit registered on July 16. NASDAQ has tumbled 4.7 per cent in the same period, and has cracked more than 10 per cent when compared to its peak of 18,647 hit on July 10.
ALSO READ: Global stock market sell-off: Chris Wood of Jefferies decodes impact
Back home, last week the Nifty 50 index snapped its 8-week winning streak, wherein the NSE benchmark had surged 10.2 per cent and hit an all-time high of 25,078 on August 01. The Nifty has shed 3.2 per cent in the last two trading sessions.
Given this background, will the key Indian benchmark stock indices witness a steeper fall or will they be able to withstand the global sell-off? Here’s what the technical charts suggest:
BSE Sensex
Current Level: 79,450
Downside Risk: 4.5%
Support: 79,940; 78,125
Resistance: 81,050; 81,755
The BSE Sensex has plunged 4.3 per cent from its all-time high of 82,129 in just three trading sessions. Going ahead, the 79,940 levels becomes the pivot point for the near-term trend. Sustained trade below the same could raise the possibility of a fall towards 75,875 levels; with interim support seen at 78,125.
On the upside, the Sensex will need to cross and sustain above 81,050 levels in order to revive the sentiment.
NSE Nifty 50
Current Level: 24,245
Downside Risk: 4.3%
Support: 24,235; 24,080; 23,840
Resistance: 24,800; 24,850
ALSO READ: This Candlestick Pattern suggests Nifty may consolidate in the near-term
Key momentum oscillators on the daily chart have shown negative crossover, while they are positive on the weekly time-frame. As per the weekly chart, the Nifty bulls are likely to make a strong attempt for the Nifty to hold on the 24,000-mark.
Nifty IT
Current Level: 39,000
Downside Risk: 6.9%
Support: 38,900
Resistance: 39,500; 40,850
Break and sustained trade below the same can trigger an extended fall towards 37,050 levels. On the upside, the 20-DMA at 39,500 levels shall act as an immediate hurdle, above which the key resistance stands at 40,850 levels.
Nifty Bank
Current Level: 50,550
Downside Risk: 6.4%
Support: 49,800
Resistance: 51,140; 51,840
Nifty Metal
Current Level: 8,985
Downside Risk: 7.1%
Support: 8,750
Resistance: 9,250; 9,500
Interim support for the index can be expected around 8,750; whereas, the key moving averages on the upside at 9,250 and 9,500 are likely to act as resistance.
Nifty Auto
Current Level: 25,010
Downside Risk: 6%
Support: 24,600
Resistance: 25,650
First Published: Aug 05 2024 | 10:18 AM IST
Ananya Das is your guide to the latest trends, viral sensations, and internet phenomena. Based on a keen understanding of digital culture, Sophie navigates the ever-evolving landscape of trending topics. With an insightful and engaging approach, she explores what’s buzzing across social media platforms, ensuring readers stay in the loop with the most talked-about and shareable content online.
