The benchmark equity indices ended Tuesday’s trading session slightly higher after seeing profit booking in the later market hours. The NSE Nifty 50 gained 31.85 points or 0.15% to settle at 21,544 points. While, S&P BSE Sensex closed 30.99 points higher, or 0.04% to settle at 71,386.21 points. Nifty Bank ended lower by 207.60 points or 0.44% to settle at 47,242.65 points.
The broader indices ended in positive territory, with Nifity Next 50 and smallcap stocks leading the gains. On the sectoral front, Realty and Healthcare stocks led the gains.
Hero MotoCorp, Adani Ports and SEZ, SBI Life Insurance, Apollo Hospital, and Adani Enterprise were the top gainers on the NSE Nifty 50, while the laggards include Britannia, Bajaj Finserv, Nestle India, HDFC Life, and Asian Paint. The Indian Volatility Index (India VIX) closed down by 1.49%.
“Markets witnessed a roller coaster ride on Tuesday and ended almost flat, in continuation to prevailing consolidation phase. Firm global cues triggered a gag-up start in Nifty, which further strengthened with renewed buying in select heavyweights however a sharp cut in latter half trimmed the gains,” said Ajit Mishra, senior vice president of technical research at Religare Broking.
Meanwhile, the broader indices also traded volatile and closed with modest gains, he added.
“The rebound attempt in Nifty shows that bulls are not in mood to loosen their grip easily and supportive global cues could prompt next leg of up move. Meanwhile, participants should limit trades and prefer hedged bets,” said Mishra.
“The Nifty witnessed an extremely volatile day of trade today. It witnessed positive price action during the first half while a sharp fall during the second half took away all the gains and the Nifty ultimately closed marginally in the green up ~32 points,” said Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas
Amid the volatile price action, the Nifty is still within the broad range of 21850-21500. On the way down multiple support parameters in the form of the 20-day moving average ( 21453) and 21406 (50% Fibonacci retracement level) shall provide a cushion in case of a deeper correction, Gedia added.
Bank Nifty witnessed a sharp decline and has also breached the previous day’s low (47387) which is a sign of weakness. However the Bank Nifty is approaching crucial support placed in the range (47000 – 46900) and until this range is decisively breached on the downside the structure is still in favor of the Bulls, Gedia said.