The Indian markets closed in the red for the second straight session, following weak global cues. The benchmark indices – Sensex and Nifty50 slipped below key levels of 60,100 and 18,000, respectively. The latter slipped below the important level for the first time since the last 8 sessions on Wednesday. 

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Dragging most of the Nifty50 index, Nifty Bank too ended the session 169 points lower to 38,041, and in broader markets Nifty Midcap down marginally by 18 points to 31,363 at the market close. The market breadth is in favour of declines, as the advance-decline ratio stood at 3:4 at the close. 

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As many as 15 stocks closed in the green and 35 in the red on Nifty50, ONGC closed as top gainer up around 3.5 per cent, followed by Tata Motors, UPL, Maruti, and Coal India each up nearly 2 per cent. While Infosys, Shree Cement, and Asian Paints become the top losers each down around 3 per cent. 

Sectorally, Nifty IT, along with financial services and FMCG, dragged the market most as the first index declined over 2 per cent, while other over 1 per cent each, respectively. Nifty Metal and Auto on the other hand closed positive in the otherwise negative market at the close. 

Rupak De, Senior Technical Analyst at LKP Securities said, “Selling pressure during the day dragged the Nifty below 10 days exponential moving average for the first time since December last year.” 

He added, “The two back-to-back significant red candles on the daily chart indicate weakness in the market which may extend over the near future. On the lower end, support is visible at 17880, below which the index may dip towards 17750. Resistance is pegged at 18050/18200.” 

“Market research suggests, 17850-17900 will be an important support level from a short-term perspective. Sustaining above 17850-17900 levels, a bounce-back expected, till the levels of 18200. The technical indicator suggests, a volatile movement in the market in the range of 17850-18200, said Vijay Dhanotiya, Category Lead- HNI Products at CapitalVia Global Research Limited. 

According to Vinod Nair, Head of Research at Geojit Financial Services, “Globally, risk sentiments took a blow as rising inflation resulting in elevated bond yield along with the on-going geopolitical tensions and surge in oil prices weighed on investor confidence.” 

He added that this along with consistent FII selling forced the domestic market to trade in favour of bears for the second consecutive day.  

Technically, the index has confirmed the bearish engulfing pattern which suggests some correction can be seen in an upcoming session, Palak Kothari Research Associate Choice Broking said, adding further that the index has taken support from 23.6 per cent RL of its previous rally which suggests breaching below the same can show downside movement.  

Moreover, the index has been trading below 21&50-HMA with a negative crossover as well as a momentum indicator MACD is trading with a negative crossover on an hourly time-frame which suggests weakness in the counter, Kothair pointed out. 

 At present, the Index has support at 17800 levels while resistance comes at 18180 levels. On the other hand, Bank nifty has support at 37800 levels while resistance at 38600 levels, the analyst said.