Benchmark indices NSE Nifty 50 and BSE Sensex ended Tuesday’s session in red amid negative global cues. The Nifty 50 dipped 26.45 points or 0.13% to 19,570.85 and Sensex plunged 106.98 points or 0.16% to 65,846.50. In sectoral indices, Bank Nifty rose 126.95 points or 0.28% to 44,964.45, Nifty IT gained 0.15%, Nifty PSU Bank skyrocketed 3.37%, Nifty Pharma soared 0.64% while Nifty Auto fell 0.31%, Nifty FMCG dropped 0.28%, Nifty Metal sank 1.17% and Nifty Realty dipped 0.18%. The top gainers on Nifty 50 were SBI Life Insurance, Hero MotoCorp, Cipla, Tech Mahindra and Wipro, while the top losers were Adani Enterprises, Hindalco Industries, Mahindra & Mahindra, Divi’s Labs and JSW steel.
“On the global front, investors are adopting a cautious approach even amidst declining bond yields as they await the release of crucial economic data. The significant drop in Chinese exports has also contributed to concerns within the global market. FIIs remain in a selling mode in the domestic market, yet active buying from DIIs is mitigating downside risks. Among sectors, PSU banks and pharma stocks inched up, while mid- and small-cap stocks have continued to outperform the benchmark, showcasing their resilience,” said Vinod Nair, Head of Research at Geojit Financial Services.
“The hourly momentum indicator has a negative crossover which is a sell signal and with the daily momentum indicator already in the sell mode further supports our bearish outlook on the index. Overall, we still shall continue to maintain our negative stance on the Nifty, and we expect levels of 19,100 from a short-term perspective,” Jatin Gedia said.
Bank Nifty to move towards 44000 in short-term
“Bank Nifty traded closed in the positive however it could not surpass the 40-hour moving average indicating selling pressure. It traded within the range of the penultimate trading session (44,520 – 45,120). Until the extreme of the range are not breached on either side we can expect the consolidation to continue. The daily momentum indicator has a negative crossover which is a sell signal. Thus, this pullback should be used as a selling opportunity. On the downside, we expect 44,000 from a short-term perspective,” Jatin Gedia added.