Should you fret over the recent market sell-off? Here's what charts suggest

On Monday, Dalal Street opened gap-down for the first time since mid-June 2022 as it extended Friday's 1 per cent slide. Benchmark indices--the BSE Sensex and Nifty50--plunged 600 points and 200 points, respectively, to trade below crucial levels of 59,000 and 17,800.
 

Sensex has shrunk 1,372 points or 2.29 per cent to 59,015 and Nifty50 shed 425 points or 2.3 per cent to 17,561 so far from their recent highs. Prior to the recent sell-off, the market had surged 18 per cent from its 52-week low hit in June. 

Going forward, here's how the key indices look on charts:  

S&P BSE SENSEX

Outlook: Support is at 58,000- 57,500 

The bearish engulfing candle, formed last Friday, has seen a follow-up selling on Monday. This candlestick formation may lead to further weakness on an immediate basis. That said, the broad outlook will stay bullish as long as the index holds 58,000 -57,500 range. The index may take breather before taking a move towards the next breakout. Immediate resistance comes at 59,800 levels. CLICK HERE FOR THE CHART

NIFTY50

Outlook: Support is at 17,300 and 17,100

Last Friday's sharp decline and the follow-up selling on Monday have raised questions around the trend reversal. However, the underlying trend remains resilient as long as 17,300 and 17,100 do not get violated aggressively. Moreover, the rebound could see firm accumulation. Immediate hurdle remains at 17,800 and the index may take a breather for some time. CLICK HERE FOR THE CHART

NIFTYBANK

Outlook: The upward outlook stays robust 

After staying in the overbought category of Relative Strength Index (RSI) for 14 sessions, the index has slipped in the red. The immediate support is at 37,500, followed by 36,500 levels. As long as the index defends these support marks and sees accumulation, the uptrend may remain intact. It could also touch 42,000 levels on firm trend. CLICK HERE FOR THE CHART

NIFTY IT INDEX

Outlook: Hurdle at 100-DMA

The index is struggling to overturn the 100-day moving average (DMA) obstacle located at Rs 30,100 levels. The next up move shall emerge only when the index sustains over the 100-DMA, daily chart shows. The index has a cushion of 28,350 levels, which is the 50-DMA mark. Broader outlook points at "Double Bottom" breakout, which suggests a strong underlying momentum. CLICK HERE FOR THE CHART

Nifty Metal

Outlook: Support of 200-DMA

After crossing the 200-DMA, the metal index has witnessed selling pressure for the first time in the overbought category. The 200-DMA is situated at 5,636 level, acting as a support mark. And till the index stays above this level, market participants can look for entry opportunities. The index may see 6,200 in the coming sessions if it holds the positive sentiment firmly.  CLICK HERE FOR THE CHART