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Below the Quote on Sensex by Sachin Gupta, VP – Technical Research at Choice Equity Broking Private Limited

"The benchmark Sensex witnessed a sharp fall on Tuesday, closing at 74,003.82, down 777.94 points (-1.04%). The index opened at 75,369.63, touched a high of 75,436.44, but failed to sustain the initial strength and declined sharply to an intraday low of 73,994.03. The inability to hold the gap-up opening reflects strong profit booking and continued supply at higher levels. The broader market also remained under pressure amid elevated crude oil prices and global bond yields.

Price action turned decisively weak as the Sensex surrendered the 74,500 mark and maintained a downward trajectory through most of the session. The immediate support is placed at 73,500–74,000, while 74,800–75,000 is likely to act as the key resistance zone. The broader trading range stands at 73,500–75,000, with the index maintaining a sideways-to-bearish bias. A sustained hold above 74,000 could provide some stability, while failure to defend this zone may keep selling pressure elevated.

Across the sectoral space, BSE Information Technology and BSE Focused IT were the key outperformers and provided some relief in an otherwise weak market. On the downside, BSE Capital Goods, BSE Realty, BSE Services, BSE Insurance and BSE Commodities were among the major lagging sectors. The broad-based weakness across financial, industrial, auto and consumer-oriented segments indicates that selling pressure remained widespread.

Technically, the session began with a 587-point gap-up, but profit booking emerged soon after the opening, followed by a decisive breakdown below 74,500 and a sustained trending decline. The Sensex formed a large bearish engulfing candle, engulfing the previous candles, while continuing to trade below all key moving averages, confirming weakness across the short- and medium-term trend. Momentum remains deeply oversold, with RSI at 25.06 versus its RSI-based MA of 37.61, while PCR at 0.90 indicates a cautious derivatives setup. With the broader structure still weak and external factors such as elevated crude and global yields adding pressure, the outlook remains sideways to bearish. The 73,500–74,000 zone will be crucial to protect on the downside, while a decisive recovery above 74,800–75,000 would be required to improve the technical setup."

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