Expect 32483 to be tested
Last week, the Sensex opened at 34689.39, made a high at 34748.69 and moved to a low of 33291.57 before it closed the week at 33349.30 and thereby registered a net fall of 966 points on a week-to-week basis.
The downside movement continues and the Sensex may test the last swing bottom of 32483 in the near-term. Resistance continues to be at the higher range even when the Sensex tries to move higher on intra-day basis or gap-up openings at times. The resistance levels are placed at 33776-34300.
The markets may recover from the support of 32483. If the Sensex sustains below 32483, then expect 30024, 29077 and 25717 to be tested. The resistance levels are placed at 33796-34301-35605.
BSE Mid-Cap Index Weekly chart:
A further downside momentum may continue below 13500.
The resistance levels are placed at 14170-14710. A rise and close above 14710 may bring about a reversal.
BSE Small-Cap Index Weekly chart:
Expect downside momentum to continue below 13396. The resistance levels are placed at 14141-14751.
Strategy for the week
Exit long and sell on a rise to 33796-34301 with a stop loss of 35606. Expect the Sensex to test the lower range of 32844-31387. If the Sensex breaches 32483, sell further for a slide towards 31081 to eventually see 28651 and 26213.