Reuters Market Eye - The BSE Sensex is expected to fall further towards 18,000 levels, according to technical indicators, says AK Prabhakar, senior vice president at brokerage AnandRathi.
The Sensex is currently trading at 18,463, having recently hit its lowest intraday level since November 21, 2011.
Prabhakar notes the Sensex still has an unfulfilled gap between September 13 and September 14 last year. Filling it could push the Sensex down to 18,062, he notes.
The Fibonacci levels also point to potential pressure. The Sensex is flirting with 18,400 points, which marks the 38.2 percent Fibonacci retracement from its 15,748 low on June 4, 2012 to the high of 20,203 on January 29.
A fall below 18,400 could open up the 50 Fibo retracement at 17,976 points. The Sensex fell below 18,400 points at one point on Friday but closed above that level.
Although there may be a bounce back in the very near term as markets are looking a bit oversold, the main trend remains down, Prabhakar says.
(Reporting by Abhishek Vishnoi)