The benchmark equity indices Nifty 50 and Sensex ended Monday’s trading session in negative territory. Both the equity indices NSE and BSE saw profit booking. The 50-stock index touched a new lifetime high of 22,526.60 but later closed off highs.
The Nifty 50 closed 160.90 points lower to settle at 22,332.65 points. While S&P BSE Sensex closed 616.75 points lower to settle at 73,502.64 points. Nifty Bank pulled back 507.95 points or 1.06% to settle at 47,327.85.
On the sectoral front, media and bank stocks dragged indices lower. Similarly, the broader indices underperformed, with smallcap and microcap stocks bled the most. The Nifty Midcap 100 closed 191.50 points or 0.39% lower to close the day’s trading at 48,774.65.
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The losers include Tata Consumer, Bajaj Auto, Power Grid Corp, Tata Steel, and SBI. The Indian Volatility Index (India VIX) closed 2.79% higher.
Summing up the day’s trading Rupak De, Senior Technical Analyst with LKP Securities said that the Nifty has been fluctuating within an ascending channel, displaying a pattern of higher highs and higher lows. The overall trend continues to be bullish, although there is currently an intermediate corrective phase in progress. In the short term, Nifty could experience weakness, possibly leading to a decline toward the range of 22200-22250. “Looking at the upside, immediate resistance is identified at 22400 based on closing prices,” De said.
The domestic markets were influenced by the continued selling in global markets on uncertainty looming over rate cuts. Also, the domestic market is at an overbought level.
Further, “the stronger-than-expected US non-farm payroll data and caution ahead of the release of US inflation data tomorrow kept investors on the edge. The broader market continued its underperformance due to valuation concerns, while investors are rebalancing their portfolios to include safe haven assets like gold,” said Vinod Nair, Head of Research at Geojit Financial Service.
“The Bank Nifty index encountered strong resistance from bears at higher levels, prompting a downside move. Immediate support for the index is at 47000-46800 levels, and a decisive close below this range could intensify selling pressure. To resume the uptrend towards all-time high levels, the index must decisively surpass the mark of 47700,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.