BSE Sensex and Nifty 50 ended with losses for the second consecutive day on Tuesday, following weak European markets, coupled with sell-off in Chinese tech giants, which tumbled up to 9 per cent, dampening investor sentiment. Moreover, marketplace participants remained on edge ahead of the Federal Reserve’s two-day monetary policy meeting that begins later in the day. BSE Sensex fell 273.51 points to finish at 52,578.76, though the Nifty 50 index settled at 15,746.45. Market breadth remained unfavorable as 1,668 stocks declined, though 1,594 scrips sophisticated. Broader markets also performed in line with equity benchmarks. BSE MidCap index fell .67 per cent or 155 points, though BSE SmallCap index was down 30 points. India VIX, the volatility index, jumped 6.28 per cent to settle at 13.23 levels.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
The marketplace failed to surpass the level of 15900 for the third consecutive day, which triggered bull liquidation under the level of 15750. During the day, Nifty fell to 15700 level exactly where it has the assistance of massive Put writing. The marketplace corrected mostly due to constant and aggressive promoting from FIIs in other Asian markets, which also weighed on the domestic marketplace sentiment. Weakness in Dr Reddy’s resulted in a enormous liquidation in the shares of other pharmaceutical businesses, dragging down the Nifty Pharma index by more than 4 per cent throughout the day, which is the largest intraday fall considering the fact that December 2020. On the other hand, the Nifty Metal index closed in the positive territory for the 4th consecutive day. The marketplace undertone is anticipated to be variety bound as we are approaching the supports of the reduced boundary (15650/15600). On the greater side, 15810 and 15900 would be resistance levels.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The weakness with choppy trend continued in the Nifty and nevertheless there is no respite for bulls at the lows. The chart pattern of each day and weekly signal a possibility of an upside bounce in the marketplace from the lows of about 15650-15680 levels in the next 1-2 sessions. On the greater side 15900 remains an overhead hurdle for the close to term.
S Ranganathan, Head of Research, LKP Securities
Stocks gave up gains today as investors have been nervous on the promoting across Chinese markets by worldwide funds coupled with the policies of the Chinese authorities and the most likely effect on Indian markets regardless of realizing that it is also a positive for India. While we did see profit booking across banks and the pharma pack on account of unfavorable newsflow on handful of pharma names, specific pockets across the broader marketplace like textile exporters & coffee stocks posted clever gains on the back of increasing coffee futures.
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Vinod Nair, Head of Research, Geojit Financial Services
The domestic marketplace skewed in favour of the bears, failing to hold onto its early gains due to weak worldwide cues and promoting in pharma stocks. Bleeding pharma businesses pulled down the marketplace due to a weak get started to sector earnings season. It developed panic as the sector is priced with higher expectations. Broadly, barring metals and customer durables, all key sectors traded in unfavorable territory. Following heavy promoting in China and weakening Asian peers ahead of the essential Fed Reserve policy meeting stated this week.
Sumeet Bagadia, Executive Director, Choice Broking
Technically, on the each day chart, the Nifty50 index has formed a extended bearish candlestick and closed under the prior two days of lows. However, there is superior assistance at about 15650 levels, which is a 50-days SMA assistance. Overall, the nifty index is struggling in a variety of 15700-15900 and either side breakout will determine the additional path. At present, Nifty is locating resistance about 15900 levels though on the downside assistance is intact at 15600 levels.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities
Nifty made a bearish bar today, right after generating a higher of 15881, it made a low of 15701 and closed at 15744. Longs have to have to be cautioned, any break under 15580 will trigger Nifty to attain 15500 and 15400 levels. Nifty has a sturdy resistance in 15880-15920 variety, any bounce towards it need to be used to book income. Fresh longs to be thought of only above 16000 on closing basis.
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Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
Currently, Nifty remains in a consolidation mode in between 15500-15400 on the downside and 15900-16000 on the upside. Until we get a decisive move out of this band, one need to stay away from constructing directional trades in the index and rather favor a stock-precise extended/brief strategy. Having mentioned that, with the Federal Reserve meeting scheduled tomorrow and the month-to-month F&O expiry on Thursday, it would be advisable to trade on a lighter note, as we could see a pickup in volatility more than the next two sessions.