The benchmark equity indices Nifty 50 and Sensex ended Tuesday’s trading session in negative territory. The Nifty 50 closed nearly 50 points lower to settle at 22,356.30 points. While S&P BSE Sensex closed almost 200 points lower to settle at 73,677.13 points. On the flip side, Nifty Bank clocked gains of 0.26% or 124.90 points to settle at 47,581.00.
On the sectoral front, IT and media stocks lost the most amongst their peers. The broader indices ended in the red, with smallcap and midcap stocks losing the most. The Nifty Midcap 100 closed 134 points or 0.27% lower to close the day’s trading at 49,114.90.
The losers include Bajaj Finserv, Bajaj Finance, Nestle India, Infosys, and SBI Life Insurance. The Indian Volatility Index (India VIX) closed 3.62% lower.
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The Nifty opened on a flat note and drifted lower during the first hour of the trading session, said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.
On the daily charts, observations are that the index is in the process of retesting the breakout of 22300 it gave during last week.
“The hourly moving averages placed in the range 22369 – 22264 shall act as a crucial support zone and until the Nifty manages to hold on to this zone we can expect a next leg of upmove to resume,” said Gedia.
“The initial target and immediate hurdle is placed at 22460 – 22530. The hourly momentum indicator has a negative crossover however has reached the equilibrium line indicating that the fall may have matured and once this consolidation has completed the upmove is likely to resume,” said Gedia.
While commenting on Nifty Bank, Gedia said, the sectoral index has been outperforming the benchmark index and expectations are that the phenomenon is likely to continue until support from NIFTY IT kicks in. In terms of levels for Bank Nifty, 47350 – 47300 is the crucial support zone while 48000 – 48200 is the immediate hurdle.