Sensex ends in red for second day running, Nifty below 16500, expect high volatility till F&O expiry

S&P BSE Sensex dived 497 points or 0.89% to settle at 55,268 while the NSE Nifty 50 index was 147 points lower at 16,483.

Sensex ends in red for second day running, Nifty below 16500, expect high volatility till F&O expiry
Bank Nifty ended at 36,408, down 0.87% while India VIX rose 2.77% to breach 18 levels. (Image: REUTERS)

Bears continued to dictate the momentum on Dalal Street on Tuesday with domestic benchmark indices falling for the second day running. S&P BSE Sensex dived 497 points or 0.89% to settle at 55,268 while the NSE Nifty 50 index was 147 points lower at 16,483. Infosys was the worst performing stock on Sensex, down 3.45%, accompanied by Hindustan Unilever, and Axis Bank. Zomato dived another 12.5% on Tuesday. Bajaj Finserv zoomed 5.58%, along with Power Grid and Bharti Airtel. Bank Nifty ended at 36,408, down 0.87% while India VIX rise 2.77% to breach 18 levels. 

Deepak Jasani, Head of Retail Research, HDFC Securities –

“Nifty fell for the second consecutive session on July 26 but closed at almost the intra-day low contrary to the previous day when it closed much above the intra-day low. Nifty has breached the near-term low of 16483 but closed around there. 16359 is the next support for the Nifty while 16521-16564 band could offer resistance. Traders seem to be looking to cut long positions ahead of the US Fed meet outcome. Thursday could be a volatile day for India.”

Ruchit Jain, Lead Research, 5paisa.com –

“The immediate support for Nifty is placed in the range of 16400-16350.  Looking at the structure, one should avoid any shorts now as the momentum readings have cooled off from the overbought zone and any positive reaction to the FED outcome can lead to a resumption of the positive momentum. However, the intraday volatility could remain high due to uncertainty and hence traders are advised to trade with a proper risk management. Amongst sectoral indices, all the sectors except Media ended in red. This could be a result of traders unwinding positions ahead to the global event.”

Om Mehra, Research Associate, Choice Broking –

“Technically Nifty has formed a bearish candle in the daily chart.  As it closed below 16500, an important psychological level, the overall structure shows that the index is likely to witness consolidation in the range of 16300-16600 in the coming sessions. Indicators such as RSI and MACD are indicating neutral views as of now in the daily chart. On the other hand, Bank nifty has support at 35900 levels while resistance at 36800 levels. As we step towards the monthly expiry high volatility is going to remain intact. Sell on rise would be advisable in coming days until 16650 levels are attained.”

Rupak De, Senior Technical Analyst at LKP Securities-

“The benchmark Nifty slipped lower before closing for the day as the proximity to the upper band of the rising channel on the daily timeframe attracted selling pressure. A “lower top lower bottom” formation is visible on the hourly chart, which indicates a near-term bearishness. On the lower end, immediate support is placed at 16400-16350, below which the index may fall towards 16000. On the higher end, resistance is visible at 16600, above which the uptrend resumes.”

Vinod Nair, Head of Research at Geojit Financial Services –

“Concerns over the global economic slowdown accelerated further as global corporate majors continued their trend of downgrading future estimates. The Fed’s meeting commencing today, which is expected to maintain its aggressive rate hike of 75 bps, weighed on recession fears, especially in western markets. Even though the domestic market is showcasing strength, the spillover effect from the western market is inevitable”

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