Sensex plunges 691.96 points in last week - Nirmal Bang

The 30-share index, Sensex plunged 691.96 points or 3.56% over previous week to 18,735.6. On the other hand, the broad based NSE Nifty descended 221.25 points, or 3.77%, to 5,651.35. Meanwhile, BSE Midcap and Smallcap index fell sharply 4.80% and 6.58% respectively. India's central bank has slashed key policy interest rates on Tuesday in its mid-quarter monetary policy review. The Reserve Bank of India's decision to cut rates by 25 bps was largely in line with market expectations. The repo rate was reduced to 7.5% from 7.75% while reverse repo was slashed to 6.5% from 6.75%. However, CRR was retained at 4%.

Nifty declined below the crucial levels of 5,680 and has closed below it. The index faces crucial hurdles at 5,720 & 5,740 levels on the upside, expect selling pressure to continue at higher levels. There is strong support at 5,640 on the downside.

Action: Nifty has an immediate support at 5,640 on the downside and resistances at 5,740 and decisive close either side one can expect trending action.

The Bank Nifty has closed below the important support of 11,300 levels expect declines to the 11,150 & 10,900 levels. There is a strong resistance at 11,380 & 11,400 levels on the upside where selling pressure is expected.

Source : Equity Bulls

Keywords