Indian markets snapped a 7-day winning streak on Tuesday pushing both the Sensex and the Nifty50 in the red after hitting record highs in the intraday trade.

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The S&P BSE Sensex hit a record high of 62,245 before reversing gains, while the Nifty50 hit a high of 18,604.

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Let’s look at the final tally on the D-Street – the S&P BSE Sensex fell 49 points to 61,716, while the Nifty50 was down 58 points to close at 18,418.

Sectorally, the action was seen in the IT, capital goods, and energy stocks, while profit-taking was visible in the realty, FMCG, consumer durables, and the public sector.

"The Indian market was showcasing strong resilience however the stretched rally booked some gains by the end of the trading day. The IT sector continued to hold the gains, while the rest of the recent performers like reality, PSU Banks and auto went into a sell-off,” Vinod Nair, Head of Research at Geojit Financial Services, said.

“Though the near-term trend can be dull, one can give decent weightage to sectors like manufacturing, power, tourism, chemicals, renewables energy and products on a long-term basis,” he said.

India VIX rose by 1.18 per cent from 17.18 to 17.38 levels. A spike in volatility from the last two days suggested that a volatile move could be seen in the market.

The NiftyBank fell 0.3 per cent after hitting a record high above 40,000 for the first time at 40,011. The index failed to hold above 40,000 zones and witnessed a profit booking decline towards 39,400 zones.

The index formed a Bearish candle on a daily scale and negated the formation of higher lows of the last 10 sessions. “Now, it has to hold above 39,300 zones to witness an upward move towards 40,000 levels, while on the downside major support is seen at 39,000 and 38,750 levels,” Chandan Taparia, Vice President - Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.

On the broader markets front – the S&P BSE Mid-cap index fell nearly 2 per cent, while the S&P BSE Small-cap index was down by 1.79 per cent.

Nearly 300 stocks on the BSE hit a fresh 52-week high that includes names like L&T Infotech, TTK Prestige, Mahindra CIE, Indian Energy Exchange, and Oracle.

We have collated views from different experts as to what investors should do when trading resumes:

Expert: Chandan Taparia, Vice President - Analyst-Derivatives at Motilal Oswal Financial Services Limited

The Nifty50 formed a Bearish Belt Hold or a Bearish Engulfing sort of candle on a daily scale and closed the day with losses of around 60 points after the winning streak of the last seven trading sessions.

Now, as long as the index holds above 18,350 zones, the rally could extend its move towards 18,600 and 18,700 levels, whereas on the downside support is seen at 18,250 and 18,150 zones.

Expert: Rahul Sharma, Co-Founder, Equity99

Investors should be cautious at these levels after the movement seen in today's trade, especially in the mid-caps and small-caps counters. Investors are advised to keep strict stop loss to their positions.

For the Nifty50, 18,350 will act as immediate support on breaking, which we might see good selling until the next support of 18250 and post that 18,200. On the upper side, 18,550 will act as major resistance, which needs to be broken for markets to reach the 18,600-mark and beyond.

Expert: Ajit Mishra, VP - Research, Religare Broking Ltd

We may see some consolidation in the index after the recent surge and stocks usually witness erratic swings during such phases. And, the prevailing earnings season would further add to the choppiness.

We, thus, recommend maintaining extra caution in the stock selection and risk management. On the benchmark front, Nifty has immediate support at 18,300.

Expert: Sachin Gupta, AVP, Research at Choice Broking

On the technical front, the Nifty50 index has formed a long bearish candle at the top of the trend, which indicates a further reversal in the counter. However, the index has taken immediate support at upper Bollinger Band formation on the daily chart.

While on an hourly chart, the stochastic has also tested the oversold zone. At present, the Index has immediate support at the 18200 level while resistance comes at 18600 levels.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)