The medium-term view of the S&P BSE Sensex remains positive as long as the benchmark index trades above the support levels of 36,400, and the rally could extend towards 42,000 over a longer horizon, analysts at Standard Chartered Bank (SCB) wrote in a research note.

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On Friday, Sensex closed up 0.68 percent at 37,581 on the Bombay Stock Exchange. Indian markets were shut on Monday for a public holiday.

“The monsoon’s progress, global cues and the next batch of Q1FY20 earnings announcements will remain the major drivers. Globally, the US-China trade war along with US-Iran escalations will remain a concern. Investors will continue monitoring the Kashmir situation, foreign fund flow, rupee’s trajectory and oil price movement,” the report said.

On the sectoral front, SCB expects BSE Auto index to outperform the Sensex in the near-term as the resistance and support levels are at 20,000 and 15,000, respectively.

In case of BSE Banking index, the brokerage expects the index to underperform the Sensex with resistance and support levels at 35,000 and 30,000, respectively.

Furthermore, it sees BSE FMCG index to underperform the Sensex with resistance and support levels at 12,400 and 10,500, respectively.

For BSE IT and BSE Realty indices, the brokerage expects them to underperform the Sensex in the near-term.