Nifty, Sensex Snap Two–Session Rally On Negative Global Cues: Market Wrap
Twelve out of the 21 sectoral indices on the BSE declined, with Utilities, Power and Auto falling the most.
The NSE Nifty 50 and the BSE Sensex failed to keep up the recovery in a choppy session on Tuesday as the benchmark indices reversed a two–session rally, dragged down by Mahindra & Mahindra Ltd. and Larsen & Toubro Ltd.
The Nifty 50 ended 27.40 points or 0.11% down at 24,194.50, and the Sensex closed 105.79 points or 0.13% lower at 80,004.06. During the session, the Nifty 50 fell as much as 0.50% to 24,125.40, while the Sensex declined 0.46% to 79,798.67.
Losses in Asia–Pacific share indices due to anticipated higher tariff on China also pressured the Indian benchmarks. President–elect Donald Trump said that US would impose additional 10% tariff on imported goods from China, Bloomberg reported.
The Nifty 50 has formed a bearish marubozu candlestick pattern, which indicates a temporary pause in the positive momentum, Aditya Gaggar, director of Progressive Share Brokers, said. "It is too premature to say but if the index corrects, then that will be considered as a right shoulder of a potential Inverted Head and Shoulder formation."
Gaggar pointed out that the immediate support and resistance would continue to be the same — 23,950 (bullish gap) and 24,350.
L&T, M&M, Sun Pharmaceutical Industries Ltd., UltraTech Cement Ltd. and Axis Bank Ltd. weighed on the Nifty 50 the most.
Infosys Ltd., Reliance Industries Ltd., Tata Consultancy Services Ltd., ICICI Bank Ltd. and Shriram Finance Ltd. led the gains in the index.
On the NSE, six sectors ended higher, five lower, and one ended flat out of 12. The Nifty Auto declined the most and IT rose the most. The Nifty IT scaled a fresh high for the second day in a row.
The broader indices outperformed as the BSE MidCap ended 0.1% higher and the SmallCap closed 0.6% higher.
Twelve out of the 21 sectoral indices on the BSE declined, with Utilities, Power and Auto falling the most.
The market breadth was skewed in favour of the buyers as 2,288 shares rose, 1,634 fell and 109 remained unchanged on the BSE.
