Sensex, Nifty headed towards 100-WMA; more pain ahead for markets?

The 100-WMAs hold the key for the Sensex and Nifty; Only a decisive breakdown of the same could mean medium-term bearishness for the benchmark indices.

The Indian equities opened with a major gap-down on Monday tracking weak global cues as soaring US inflation triggered fears of steeper rate hikes by the US Federal Reserve.

Last week, the markets had reversed their three-week rally with over 2 per cent weekly fall. A massive gap-down on Monday has now further dented the investor sentiment. 

Going forward on the basis of technical charts here's what one can expect the benchmark indices to do:

S&P BSE SENSEX

Likely target: 51,249 (after breaking 52,246)

Downside potential: 2%

While