Sensex Today: On September 21, the market experienced intense selling for the third session in a row, with losses in every sector. Nifty dropped below 19,750 points, while the Sensex and Nifty both plummeted by about 1%. The indices for the banking, automotive, and pharmaceutical sectors were the most impacted.
As the benchmark index dipped to 19,700, Nifty kept declining. The Nifty index fell beneath its 20EMA, showing a lack of optimistic enthusiasm. A bearish crossover in the RSI indicates weakness. As long as the price is below 20,000, selling during rallies is still the preferable course of action. Support on the downside is located between 19,700 and 19,630.
The banking benchmark index, Bank Nifty, underwent a big correction during the day, dropping below the 45,000 level for the first time in a number of days. On the daily time period, it also deviated below the 20EMA and 50EMA. On the daily time scale, the RSI is displaying bearish signals with a bearish crossover. It might rise in the near future toward 44,000 at lower levels while running into opposition at 45,000 at higher levels.
Investors were uneasy following the US Fed’s speech, which hinted at another rate hike later this year, and sold stocks in the domestic market for the third day in a row.
Investors are concerned by additional risk factors, such as protracted outflows of foreign funds, rising US currency index and Treasury yields, and higher crude oil prices. Technically, the correction period for the Nifty is over, and the important level to watch moving forward for the bulls will be 19700. We can anticipate a relief rally if the index manages to trade above this level, and over 19700 the market may rally to 19825–19875. On the other hand, new sales are only permitted following the rejection of 19700.
