The benchmark equity indices ended Tuesday’s trading session in the negative territory. The NSE Nifty 50 lost 215.50 points or 0.99% to settle at 21,522.10 points. While S&P BSE Sensex closed 801.67 points lower or 1.11% to settle at 71,139.90 points. The sectoral-indice Nifty Bank lost 74.60 points or 0.16% to settle at 45,367.75 points.
On the sectoral front, Consumer Durables and FMCG stocks dragged the indices lower. The broader indices also ended in the red, with largecap and midcap stocks falling the most.
The gainers include BPCL, Tata Motors, Grasim Industries, Eicher Motors, and Adani Enterprises. The Indian Volatility Index (India VIX) closed 2.68% higher.
“The Nifty opened on a positive note however it was unable to carry on the positive momentum. It witnessed selling pressure and closed in the negative down ~215 points. On the daily charts we can observe that the Nifty has faced resistance around the 21750 mark which coincides with the 61.82% Fibonacci Retracement level of the fall from 22124 – 21137,” said Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas.
“The Nifty has failed to cross that level thus ending the counter-trend rally. The hourly and the daily momentum indicators are having a negative crossover which is a sell signal. Thus, both price and momentum indicators suggest weakness. Considering the upcoming budget during the week the Nifty is likely to consolidate within the range 21200 – 22000 from a short-term perspective and a decisive close beyond this range is likely to result in trending moves in that direction,” said Gedia.
“Bank Nifty managed to survive the day without much price damage as it closed the day marginally in the red down 75 points. Structurally the bank Nifty seems to be consolidating and we expect it to resume its pullback towards 46000 from a short-term perspective,” added Gedia.
“Markets failed to capitalize on Monday’s advance and shed nearly a percent. After the initial uptick, Nifty traded volatile in the first half however a sharp cut in select heavyweights in the final hour pushed the index lower. Eventually, it settled closer to the day’s low at 21,528.80 levels. Most sectors traded in tandem with the move wherein energy and FMCG were among the top losers. Meanwhile, the broader indices traded mixed wherein the smallcap index managed to make a new high and ended marginally higher,” said Ajit Mishra, senior vice president at Religare Broking.
“The recent price action shows indecisiveness among the participants despite the favorable global cues and we feel the prevailing tone may continue. Meanwhile, traders should focus on stock selection and maintain positions on both sides,” said Mishra.