Markets faltered as investors resorted to profit-taking after the record-breaking rally in the last few sessions. Investors booked profit in realty, IT and select telecom and banking stocks that saw benchmark Nifty plunge sharply.
At close, the Sensex was down 410.28 points or 0.68 percent at 59,667.60, and the Nifty was down 106.50 points or 0.60 percent at 17,748.60. About 1463 shares have advanced, 1715 shares declined, and 164 shares are unchanged.
Bank nifty closed at 37,945 levels with a loss of 226 points.
"Nifty and Bank nifty both gave sharp recovery from their days low today. Nifty made a low of 17,576 and then closed at 17,735 down by 120 points since September 27 close. Nifty is in a strong bullish trend and buying on dips with strict stoploss is the suggested strategy. 17,900-17,950 will act as a resistance zone for Nifty above which Nifty may test 18,040 and 18,080 levels," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
On the sectoral front, the Realty index is down over 3 percent and the IT index is down nearly 2 percent. However, buying is seen in the metal, oil & gas and power stocks.
Palak Kothari, Research Associate, Choice Broking said, "On a technical front, the Index has taken support from the lower band of a rising wedge pattern which suggests an upside rally in coming sessions. Moreover, the Index has taken support from 100 HMA and given closing above the same, which further adds strength to the upside. On four hourly charts, the Index has formed a Hammer candlestick with the support of the 21-Four Hourly Moving Average as well as Hourly Momentum Indicator Stochastic. It has also bounced from the oversold zone with a positive crossover which points to upside movement in the counter. At present, the Index has support at 17550 levels while upside resistance comes at 17950 levels."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said, "Technically, on daily charts the index has formed a bearish candle which indicates further weakness from current levels. However, as long as the index is trading above the 20 day SMA, the uptrend texture is intact. We are of the view that the market has completed one leg of correction and now 20 day SMA and 17,600 -17,550 levels would act as a sacrosanct support zone. For day traders, 17,800-17,840 would be the intraday resistance level. On the flip side, 17,600–17,550 would be the strong intraday support zone. The texture of the market is volatile and it will remain volatile till the monthly expiry day."
Mohit Nigam, Head - PMS, Hem Securities, said, "IT stocks continue to drag for a second consecutive day while top private sector banking institutions also participated in today's fall. The Realty index fell over 3 percent after a sharp rise of 29 percent in just five trading sessions. Power stocks were today's outperformers gaining over 2 percent as energy demand rises. WTI Crude crossed $76 amid concerns of supply crunch and investors' concern is rising as it may contribute to rise in inflation. Dow Futures are lower by 0.5 percent, flashing concerns over rising yield and oil prices. Investors on Dalal Street bought the dips today and helped Nifty close above 17,700 levels. Going forward, we believe that Nifty's support shall lie around 17,700 while near term resistance could be seen at 18,000."
