BSE Shares Slide Below Key Averages: SEBI RA Sudhansu Panda Warns Of Breakdown Risk Near ₹2,370

While technical indicators suggest the continuation of a downtrend, the analyst sees accumulation opportunities in the ₹2,050 - ₹2,200 zone

BSE has been in a corrective phase after touching a high near ₹3,000. In the past month, the stock has declined nearly 10%.

BSE shares are currently trading below their key moving averages, the 50-day exponential moving average (EMA) at ₹2,523 and the 20-day EMA at ₹2,554, indicating persistent bearish pressure, said Sudhansu Sekhar Panda of Bluemoon Research.

On the daily chart, an inverted flag and pole pattern has emerged, the analyst observed. It typically serves as a continuation signal in a downtrend, indicating the potential for further downside unless a strong bullish trigger emerges.

The price has been moving in a volatile, sideways range of ₹2,370 - ₹2,580 over the past two weeks, with the ₹2,370 - ₹2,400 zone acting as critical support. A breakdown below this could drag the stock toward ₹2,300 - ₹2,230, with ultimate support seen around ₹2,030, based on past resistance-turned-support dynamics, Panda said.

At the time of writing, the stock is up 1.1% at ₹2,491.30.

However, with the shares down nearly 18% from their recent peak, investors can consider buying, according to Panda. A close above ₹2,580, without breaching the ₹2370 - ₹2400 support zone, could offer a potential upside toward ₹2,650 - ₹2,700, with ₹2,500 as a new support base.

For long-term investors, any deeper correction into the ₹2,050 - ₹2,200 zone could be an enticing accumulation range, considering BSE’s strong fundamentals.

Retail sentiment shifted to ‘bearish’ from ‘neutral’ a day earlier.

Year-to-date (YTD), the stock has surged 40.5%

For updates and corrections, email newsroom[at]stocktwits[dot]com<