Bears force Sensex lower, Nifty trend remains positive till index stays above 18000-18100

S&P BSE Sensex ended 554 points or 0.90% lower at 60,754 while the Nifty 50 index closed 195 points or 1.07% at 18,113.

India VIX zoomed 6% to regain 17 levels. (Image: REUTERS)

Bears took over Dalal Street on Tuesday afternoon, forcing benchmark indices along with broader markets to close deep in red. S&P BSE Sensex ended 554 points or 0.90% lower at 60,754 while the Nifty 50 index closed 195 points or 1.07% at 18,113. Axis Bank was the top Sensex gainer, up 1.83%, followed by HDFC Bank, ICICI Bank, and Kotak Mahindra Bank. Maruti Suzuki was the worst-performing Sensex stock, down 4%, accompanied by Ultratech Cement, Tech Mahindra, and HCL Technologies. Bank Nifty ended flat with negative bias while Broader markets fared worse than benchmarks. India VIX zoomed 6% to regain 17 levels. 

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments –

“18350 proved to be a stiff resistance and the markets decided to give up some of its gains! Closing below 18000-18100 might spook traders and motivate them to offload positions. Until that does not happen, the market trend is positive and long positions can be accumulated on corrections.”

Rupak De, Senior Technical Analyst at LKP Securities

“Nifty started the day on a positive note but failed to carry the momentum throughout the session. On the higher end price found resistance at 18350 which resulted in a sharp fall towards 18080. On the daily chart Nifty has formed a bearish engulfing pattern.  A bearish harmonic pattern is also visible on the daily chart of Nifty. Momentum oscillator RSI (14) has entered in a bearish crossover. On the higher end resistance is visible at 18350-18400; whereas on the lower end support is visible at 18000/17850″

Sachin Gupta, AVP, Research, Choice Broking –

“Technically, the nifty index has formed a bearish engulfing pattern, which indicates some correction in the index. A momentum indicator RSI & Stochastic has reversed from overbought territory, which suggests bearish sentiments for the coming day.  On the options front, the maximum call OI is at 18300 strike price while maximum put option OI is at 17000 strike price followed by 18000. However, overall market structure is bullish with positive bias so every dip would be a buying opportunity for the long term players. At present, the Index has support at 18000 levels while resistance comes at 18300 levels, crossing above the same can show 18500-18600 levels. On the other hand, Bank nifty has support at 37800 levels while resistance at 38600 levels.”

Vinod Nair, Head of Research at Geojit Financial Services

“Following a weak lead from the global markets, domestic indices witnessed a highly volatile trade ahead of the press conference by the Finance Minister today. Surge in oil prices and FIIs turning net sellers also added volatility in the domestic market. Globally, markets witnessed selling pressure following a surge in US treasury yield amid rate hike worries while oil prices rose on supply tension owing to the drone attack on UAE.”

Ajit Mishra, VP – Research, Religare Broking –

“We may see a further decline in the Nifty index and the 17,950-18,050 zone would act as a support. Volatility usually remains high during the corrective phase and earnings season is further adding to the choppiness. Keeping in mind the scenario, it’s prudent to maintain a few shorts also. The focus should be on earnings and global markets for cues.”

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