The benchmark indices ended in the red on June 3. The Nifty index opened sharply higher tracking relief rally in US market and positive Asian markets and made an intraday high at 16,793.85 levels but wiped-out early gains and closed with a loss of 43.70 points. However, Bank Nifty closed the session at 35,275.05 level with a loss of 338.60 points.
The BSE Sensex fell more than 600 points from day's high to end with 49 points loss at 55,769.23, and the Nifty50 shed 44 points to 16,584.
On the sectoral front, except IT all the index ended in Red, Nifty Auto was the prime laggard. Stocks like Reliance, Larsen and Toubro, Infosys, Sun Pharma were the top gainers. Grasim, Ultra Cements, Shree Cements, and Maruti were top losers.
Palak Kothari said, the Nifty has formed an Open Bearish Marubozu kind of candlestick pattern on daily time frame which indicates weakness for upcoming sessions. Furthermore, the index has faced resistance from rising trendline which points weakness in the counter. Moreover, the Nifty has given a breakout of 16,700 levels but bears took a charge in the second half as the index closed on a red note. Nifty has given closing below 89- Four Hourly Moving Average which indicates sustain below the same can show downside moment in the counter. However, the momentum indicators Stochastic was trading with a negative crossover on an hourly chart which suggest downside journey in the counter. The Nifty may find Strong support around 16,400 levels, while on the upside 16,800 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 34,800 levels while resistance at 36,000 levels. Overall Market can show some downside movement till 16,400 levels.
Mohit Nigam, Head - PMS, Hem Securities, said, Markets ended the day with profitbooking but held on to the weekly gains for the third week. Sensex shredded close to 600 points from the day's high while Nifty50 ended the day with a loss of about 50 points. Reliance Industries, the biggest weightage holder in the indices, zoomed by 14 percent over the past couple of weeks and reached highs of 2,817 in today's trade. Nifty 50 would have support resistance at 16,400 to 16,800 while for bank nifty its 34,800 and 35,600 resistance for Monday, Nigam said.
Among the sector specific themes, Castrol India gained over 3.5 percent after the announcement of collaboration with MG Motor India and Jio-Bp to explore mobility solutions for electric cars. Aether industries listed at a premium at 704 on NSE with gains of close to 10 percent and hit upper circuit of 774 during the day. Deepak Nitrite faced a fire incident at its plant in Vadodara took a beating with tumbling of 5.5 percent and communicated the operations would resume in a couple of days.
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd said, amidst heightened volatility in recent weeks, traders are becoming more selective and want to avoid getting into any awkward position. Although short term texture of the market is still in to the bullish side, on weekly charts the Nifty has formed a Hammer candlestick formation which is indicating further weakness from the current levels. On the higher side, the 50 day SMA or 16850 would act as a key resistance level and above the same the index could hit the level of 16950-17000. Similarly, on the lower side, 16450 would be the sacrosanct support zone. Below the same, the chances of hitting 16350-16300 appear bright.
Bourses in Asia close in green
In Asia, bourses in Seoul and Tokyo ended in the green. Chinese markets were closed for a holiday.
Markets in Europe were trading mostly higher during afternoon trade. Wall Street had ended sharply higher on Thursday.
Crude prices decline
Meanwhile, international oil benchmark Brent crude declined 0.66 percent to $116.8 per barrel.
Foreign institutional investors offloaded shares worth a net Rs 451.82 crore on Thursday, according to stock exchange data.
Meanwhile, the rupee declined 3 paise to close at 77.63 (provisional) against US dollar.
(With inputs from Reuters, Agencies)