Close below 20-day SMA broadly negative
57,800 could be sacrosanct support zone for Sensex; 58,300 and 58,500 would act as an important resistance zone for index; below 57,800 it could slip till 57,500-57,300
Mumbai: On Monday, the benchmark indices corrected sharply. The Sensex drag over 861 points. Among Sectors, IT was the biggest loser, corrected nearly 3.5 per cent, whereas despite weak sentiment buying interest were seen in FMCG stocks.
Technically, on the backdrop of weak global cues our market opened with a gap down. However, after a weak opening the index witnessed sharp recovery from the day lowest levels. Further, after a long time, the index succeeds to close below 20-day SMA (Simple Moving Average) which is broadly negative.
"We are of the view that, 58,300 and 58,500 would act as an important resistance zone for the index. And 57,800 could be the sacrosanct support zone for the index," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Below 57,800 the index could slip till 57,500-57,300. On the flip side above 58,300 the index would move up to 58,500/58,700.
