Sensex Share Price Outlook: Why is this Index Trading Lower?

Uncertainty around Beijing’s new regulatory outlook and Asia’s coronavirus pandemic problem continue to pressurize Asian indices on Wednesday, ahead of the FOMC decision. 

Asian indices have been under pressure when a leaked document showed that Beijing looks set to roll out a series of regulations targeting the for-profit private education sector. Several affected companies are listed in indices across Asia, and at least two are trading on US exchanges.

The Sensex index fell 0.26% on Wednesday to mark three consecutive losing sessions. The Sensex was trading much lower at a point in the trading session, but new demand at a support level kept prices within the range seen on the daily chart.

Sensex Share Price Outlook

Wednesday’s price movement found support at the 51772 price mark (1/21 June lows) before fresh demand caused a bounce on the daily candle. This bounce keeps the price range-bound with 51772 as the floor and 53349 as the ceiling.

A break of price above the ceiling takes the Sensex price mark to 54000 (50% Fibonacci extension from the 30 October – 16 February – 22 April price swing. Above this price mark, a potential future target lies at 55632.

On the other hand, a breakdown of the floor of this range opens the door towards 50389 (29 April high and 25 May low), with 49552 serving as additional price support.

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Sensex: Daily Chart

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