Benchmark indices NSE Nifty 50 and BSE Sensex ended Tuesday’s session deeply in the red. The NSE Nifty 50 tanked 112.35 points or 0.61% to 18,286.5 and BSE Sensex plunged 413.24 points or 0.66% to 61,932.47. In sectoral indices, Bank Nifty tumbled 168.40 points or 0.38% to 43,903.70, Nifty Auto fell 130.15 points or 0.93% to 13,877.70 while Nifty PSU Bank rose 28.90 points or 0.72% to 4,049.70. The top gainers on Nifty 50 were BPCL, Coal India, ONGC, Bajaj Finance and NTPC while the losers were Kotak Bank, Tata Motors, Mahindra & Mahindra, Apollo Hospital and Maruti Suzuki.
“The domestic benchmark’s ascent towards a record high was interrupted by selling pressure in heavyweight stocks, although small and mid-cap stocks outperformed. As anticipated, the Eurozone economy experienced modest growth of 0.1% QoQ in the Jan-Mar period, following a stagnant previous quarter. In the US market, cautious trading prevailed as debt-ceiling negotiations took precedence,” said Vinod Nair, Head of Research at Geojit Financial Services.
Bank Nifty may witness further correction towards 43500
“Bank Nifty witnessed some profit booking at a higher level and the major contributors were HDFC twins. The index, if sustains below 44,000, can witness further correction towards 43,500 where the highest open interest is built up on the put side. The momentum indicator RSI is showing negative divergence which confirms the bearishness,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.