Benchmark indices ended NSE Nifty 50 and BSE Sensex ended Wednesday’s session in the red. The NSE Nifty 50 tumbled 62.60 points or 0.34% to 18,285.40 and BSE Sensex slipped 208.01 points or 0.34% to 61,773.78. In sectoral indices, Bank Nifty tanked 276.60 points or 0.63% to 43,677.85 while Nifty Pharma jumped 126.25 points or 1.03% to 12,440.45. The top gainers on Nifty 50 were Sun Pharma, Dr Reddy, ITC, IndusInd Bank and Titan while the losers were Adani Enterprises, Adani Ports, Tata Motors, HDFC Bank and ICICI Bank.
“The domestic market experienced a short-lived rally that was overshadowed by subdued global market sentiment. US Treasury yields rose due to concerns over stalled US debt ceiling talks and hawkish comments from US Fed officials, which reduced the chances of a rate pause. European markets also declined, triggered by higher-than-expected UK inflation figures that bet on more rate hikes by the BoE,” said Vinod Nair, Head of Research at Geojit Financial Services.
Where are NSE Nifty 50, Bank Nifty headed?
NSE Nifty 50 may face further pressure till 18200-18180 levels
“Nifty tried to cross and sustain above 18400 levels, but its efforts turned out to be futile and closed about 0.3 percent lower. The index has formed gravestone doji patterns on daily charts and a move below 18260 can result in further pressure till 18200-18180 levels tomorrow. 18200 strike put commands the highest open interest concentration in the put chain which is likely to provide some support to the benchmark index but an hourly close below 18200 can result in an intraday pressure towards expiry,” said Gaurav Bissa, VP – InCred Equities.
Bank Nifty may fall to 42600-42200 levels
“Bank Nifty which has been underperforming Nifty for some time but managing to hold near 44000 was seen giving up its efforts to stay positive and witnessed incremental pressure towards the end of the trading session. The index has formed an inverted hammer pattern on daily charts and a close below 43500 can result in a fall towards 42600-42200 levels,” said Gaurav Bissa.