After declining nearly 3 per cent in the last five trading sessions, the BSE Sensex and the Nifty are down over a per cent each in trades so far today taking cues from the exit polls for the recently concluded Delhi polls.
Six out of seven exit polls from various media, have predicted a majority government by the AAP (Aam Aadmi Party) - Arvind Kejriwal. Narendra Modi-led Bhartiya Janata Party (BJP) seems second in the race to Delhi.
The markets have been softening off late following the steep climb to record high levels, lower-than-expected corporate earnings and global worries. Kejriwal's likely victory in the Delhi polls followed by populist measures by the government could be the newer reasons for the markets to correct deeper into red.
The counting for the Delhi polls is scheduled for Tuesday. Till then, expect market to remain choppy.
The Sensex and the Nifty have broken the crucial near-term support at the 20-DMA (Daily Moving Average) so far in trades today and are currently hovering around 28,427 and 8,575, respectively.
In the case, the downward momentum continues, the key benchmark indices may continue the slide to test the next major support around the 50-DMA. The 50-DMA for the BSE Sensex is at 28,050-odd level, while support for the Nifty lies at 8,445.
Further, the Sensex has all dropped below the key quarterly Fibonacci level at 28,600-odd levels. This indicates that the BSE index may now drop to 28,140 or steeper down to 27,500-odd levels.
Six out of seven exit polls from various media, have predicted a majority government by the AAP (Aam Aadmi Party) - Arvind Kejriwal. Narendra Modi-led Bhartiya Janata Party (BJP) seems second in the race to Delhi.
The markets have been softening off late following the steep climb to record high levels, lower-than-expected corporate earnings and global worries. Kejriwal's likely victory in the Delhi polls followed by populist measures by the government could be the newer reasons for the markets to correct deeper into red.
The counting for the Delhi polls is scheduled for Tuesday. Till then, expect market to remain choppy.
The Sensex and the Nifty have broken the crucial near-term support at the 20-DMA (Daily Moving Average) so far in trades today and are currently hovering around 28,427 and 8,575, respectively.
In the case, the downward momentum continues, the key benchmark indices may continue the slide to test the next major support around the 50-DMA. The 50-DMA for the BSE Sensex is at 28,050-odd level, while support for the Nifty lies at 8,445.
Further, the Sensex has all dropped below the key quarterly Fibonacci level at 28,600-odd levels. This indicates that the BSE index may now drop to 28,140 or steeper down to 27,500-odd levels.
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