Benchmark indices NSE Nifty 50 and BSE Sensex ended Wednesday’s session in the red. The Nifty 50 sank 55.10 points or 0.28% to 19,384.30 and Sensex tumbled 223.94 points or 0.34% to 65,393.90. In sectoral indices, Bank Nifty plunged 105.60 points or 0.24% to 44,639.45, Nifty Financial Services fell 0.23%, Nifty IT tanked 0.71% and Nifty Private Bank declined 0.29% while Nifty FMCG rose 0.18%, Nifty Pharma gained 0.30% and Nifty PSU Bank surged 0.83%. The top gainers on Nifty 50 were ONGC, Eicher Motors, Nestle India, Kotak Bank and SBI Life while the losers were Adani Enterprises, Tata Motors, UltraTech Cement, Infosys and Adani Ports.
“The range-bound movement in the Indian indices was influenced by the likelihood of subdued IT earnings. While optimism about moderation in US inflation supported the broad index. Further, an uptick in domestic food inflation on the back of higher mandi prices trending above MSP and muted Kharif sowing forced the investors to be cautious. Monsoon progress and the Kharif sowing trend in July are the keys to the future inflation trend,” said Vinod Nair, Head of Research at Geojit Financial Services.
Bank Nifty support at 44600-44500; resistance at 44900-45000
“Bank Nifty is seen to be making bearish candles consecutively since the last four days on the daily timeframe after rejecting from its resistance zones of 45000; it has closed near a very crucial support zone of 44500 as selling pressure deepened in the second half of today. The trend for the coming week can be considered as sideways to bullish where dips can be used as a buying opportunity, till the time Bank Nifty sustains above 44500. The resistance is at around 44900, 45000 and the support is at around 44600, 44500. Technical indicator RSI is at around 55 whereas the 200 EMA is at 41830,” said Mitesh Karwa, Research Analyst at Bonanza Portfolio Ltd.