After a positive opening, the benchmark index corrected from the day's high ahead of weekly expiry and made a low at 18,048. However, during the closing hours there was a further recovery in the index. It closed at 18178.10 levels with a loss of 0.48 percent while Banknifty witnessed a positive momentum throughout the day, settled at 40030.20 with a gain of 1.3 percent in a day.
The Sensex was down 336.46 points or 0.55 percent at 60,923.50. The broader Nifty was down 88.50 points or 0.48 percent at 18,178.10. About 1.580 shares have advanced, 1627 shares declined, and 130 shares are unchanged.
Asian Paints, Hindalco Industries, Reliance Industries, Infosys and Dr Reddys Labs were among the major Nifty losers. Kotak Mahindra Bank, Tata Motors, Grasim Industries, BPCL and HDFC were among the gainers.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "The Nifty gave a good recovery after making a low of 18048 , it closed at 18222 down by 43 points since yesterdays close. BankNifty showed a lot of strength today , it closed at 40,030 , up by 510 points. Overall there are mixed signals in market and traders are advised to maintain strict stoploss in trades."
Deepak Jasani, Head-Retail, HDFC Securities, said, "Nifty fell for the third straight session on October 21 though it recovered a large part of early losses by the end. Nifty opened up and sold off rightaway. Sell-off in the Asian markets post higher opening and mixed early corporate results in India impacted sentiments. Nifty made an intra day low at 2.25 PM and rose well from there. At close, Nifty was down 0.28 percent or 51.4 points to 18215.2.
"On a day when the volumes on the NSE were the lowest in the past 4 days, Banks were the main gainers among sectors while Metals, Telecom, IT and Realty were the main losers. BSE Smallcap and Midcap indices fell 0.38-0.69 percent, Jasani added.
Sachin Gupta, AVP-Research, Choice Broking, said, "Technically, the index has taken good support at Middle Bollinger Band and 21 SMA on a four hourly chart. Moreover, on a four hourly chart, indicates further support in the index. Moreover, it has also formed a Bullish Hammer Candlestick pattern, which suggests a bullish strength in the index. At present, the Index has immediate support at the 18,050 level while an upside resistance comes around 18,400 levels."
Mohit Nigam, Head - PMS, Hem Securities, said, "Strong selling was seen in IT, Realty and Metal stocks while buying is witnessed in banking stocks. Asian Paints tanked over 7 percent after the company reported 28.2 percent year-on-year decline in consolidated net profit at Rs 595.96 crore in July-September quarter, due to higher raw material cost. Reliance Industries was down by 3 percent which alone has accounted for a big loss on the benchmark indices. The broader market is witnessing a sell off compared to benchmark indices as we can say that some stocks which have massively rallied in the last one month and were trading at quite a bit stretched valuations had witnessed major profit booking in the last 2-3 days."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. said, "Weak global cues triggered selling pressure for the third day in a row, while for one more time bears took the aggressive stance near the 18,350 resistance level. Technically, after a short term price correction, the Nifty took support near the 18,050 level and reversed sharply. The index has formed a bearish candle on daily charts but at the same time it took support near the important retracement level of 18030. We are of the view that the intraday texture of the market is weak and is likely to continue in the near future. However, 18,150 would be the immediate support level for the day traders. As long as the index is trading above the same, a pull back rally could be seen up to 18,250-18,300 levels. On the flip side, dismissal of 18,150 may intensify further weakness up to 18,030-18,000."
