Sensex, Nifty Close Lower As Banks, IT Stocks Drag: Market Wrap
The Nifty ended 76.10 points, or 0.35%, lower at 21,665.80, while the Sensex fell 379.46 points, or 0.53%, to end at 71,892.48.
![<div class="paragraphs"><p>NSE building in Mumbai. (Photo: Vijay Sartape/NDTV Profit) </p></div>](https://media.assettype.com/bloombergquint%2F2023-12%2Fd0846d9d-c39a-444e-96f2-4a9c086ce720%2FTill_up_Exterior_front_view_of_NSE_signage__logo_at_office_building_in_BKC__Bandra_Kurla_Complex___S.jpeg?auto=format%2Ccompress&w=200)
India's benchmark stock indices closed lower on Tuesday as information technology and banking stocks declined amid a lack of fresh triggers.
The NSE Nifty 50 closed below 21,700 for the first time in the last three sessions, while the S&P BSE Sensex closed below 72,000 after four sessions.
The Nifty ended 76.10 points, or 0.35%, lower at 21,665.80, while the Sensex fell 379.46 points, or 0.53%, to end at 71,892.48.
"A bearish candle has emerged on the daily Nifty chart, indicating a potential bearish trend in the near future," said Rupak De, senior technical analyst at LKP Securities Ltd., adding that the sentiment is expected to stay bearish as long as it remains below 21,750. "Any upward movement towards 21,750 could encounter selling pressure. However, a clear breakout above 21,750 could shift sentiment in favour of the bulls. Support is established at 21,500 on the lower end."
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![Sensex, Nifty Close Lower As Banks, IT Stocks Drag: Market Wrap](https://media.assettype.com/bloombergquint%2F2024-01%2F8060cb66-a1a9-463a-9c62-ddf5fbd0d6fb%2FSENSEX__77_.png?auto=format%2Ccompress)
For Bank Nifty to resume the upward trend and regain positive momentum, the index needs to achieve a breakout above the resistance of 48,300, targeting 49,000–50,000 levels, said Kunal Shah, senior technical and derivative analyst at LKP Securities.
"The immediate support for the index is at 47,600, coinciding with its 20-day moving average (20DMA). A decisive breach below this level could intensify the downward momentum," he said.
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Bharti Airtel Ltd., Coal India Ltd., ITC Ltd., Reliance Industries Ltd. and Sun Pharmaceutical Industries Ltd. positively contributed to the Nifty 50.
Whereas, ICICI Bank Ltd., Infosys Ltd., Larsen & Toubro Ltd., Kotak Mahindra Ltd. and Mahindra & Mahindra Ltd. weighed on the index.
Sectoral indices ended mixed, with Nifty Pharma ending more than 2% higher. Meanwhile Nifty Auto, Nifty Realty, and Nifty IT fell.
The broader markets declined, with the S&P BSE SmallCap ending 0.02% lower and the S&P BSE MidCap declining 0.08% at the close of the market on Tuesday.
Fourteen of the 20 sectors compiled by BSE declined, while six advanced. S&P BSE Capital Goods and Auto declined the most.
The market breadth was split between buyers and sellers. About 1,991 stocks advanced, 1,812 declined, and 126 remained unchanged on the BSE.