Benchmark indices NSE Nifty and BSE Sensex extended losses on Tuesday and settled in the red. The NSE Nifty 50 fell 46.7 points or 0.26% to 17,660.15 and BSE Sensex plunged 183.74 points or 0.31% to 59,727.01. In sectoral indices, Bank Nifty rose 2.65 points or 0.01% to 42,265.20 and Nifty IT jumped 158.75 points or 0.59% to 27,166.95. The top gainers on Nifty 50 were Coal India, Maruti, Sun Pharma, Hindalco and UPL while the top losers were Power Grid, UltraTech Cement, Adani Enterprises, Apollo Hospital and Titan.
“The banking stocks pared their performance during the day while the market was grappling with the sell-off in the IT sector. However, the IT sector experienced a marginal relief rally, aided by bottom fishing, as the recent correction has made the sector attractive for long-term investment. The pharma sector also bucked the negative trend due to an improvement in outlook along with strong movements in mid and small-cap stocks,” said Vinod Nair, Head of Research at Geojit Financial Services.
Where are NSE Nifty 50, Bank Nifty headed?
Nifty critical support at 17600-17550; resistance at 17850-17900
“Benchmark indices recovered some of their intraday losses, but the Nifty is still trading below 17,700. On daily charts, the Nifty has managed to hold the 100 EMA, which is currently around 17625. Nifty has seen a good profit booking in the last two days, with a good sell-off in the first 15 minutes of trading. 17600-17550 is a critical support level for the Nifty. If this level is maintained, we may see a slight rebound up to 17850-17900,” said Ameya Ranadive CMT, CFTe, Equity Research Analyst at Choice Broking.
Bank Nifty support at 42000-41800; resistance at 42800-43000
“Bank Nifty had a turbulent day, failing to close over 43300. Bank Nifty is displaying relative strength in comparison to Nifty, having managed to close in positive territory for the last two days. Bank Nifty must maintain 42000-41800 as a critical support level. Bank Nifty resistance is seen between 42800 and 43000,” said Ameya Ranadive.