The benchmark index slipped lower consecutively for the second day in a row amid weak global cues. Rising cases of COVID-19 Delta variant are keeping pressure on the global sentiments.
In the Tuesday session, the Nifty50 index settled at 15,629.40 levels with a loss of almost 123 points from the prior close while Bank Nifty fell by 1.9 percent in a day to close at 34,413 levels. All the sectoral indices closed in red whereas Nifty Metal, Banking and Capital Goods dragged more than 1.5 percent in a day along with midcaps and small caps index. Despite that, and a negative market, a few stocks like Asian Paints, Ultra Cements, Grasim and Maruti were in positive territory while IndusInd Bank, Hindalco, Tata Steel.
According to Sumeet Bagadia, Executive Director, Choice Broking, "on the technical front, the nifty50 index has fallen more than 2 percent in the last two days and also closed a day below the prior Doji Candlestick. A momentum indicator RSI & Stochastic showed negative crossover. However, the index has taken good support at 50-days SMA and pulled back from there, which indicates some recovery for the coming session. At present, the Nifty has support at 15,500 levels while resistance comes at 15,830 levels," he said.
Gaurav Udani, CEO & Founder, ThincRedBlu securities, said, "Nifty declined on the 2nd consecutive day today. It ended about 125 points negative. Nifty also broke its important support of 15,600 on intraday basis and managed to close marginally above it at 15,625. Now a further fall below 15,600 can take Nifty to 15,400 levels. Traders are advised to be cautious in their long positions and a tight stop loss should be maintained to protect capital", he said.
Deepak Jasani, Head-Retail Research, HDFC Securities said, patchy monsoons in India and subdued Q1FY22 corporate results raised fresh concerns on the economic growth and market valuation. Nifty could remain in the 15,520-15,690 band for the next 1-2 sessions. After the three day fall, a small bounce is likely which may not sustain for long, he said.
"Although, technically the market closed above the 15,600/52,100-level, we believe the pain is not over and the Nifty/Sensex would move to the 15,450/51,600 or 15,300/51,000 levels in the next few days," said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd. "On the upside, 15,680/52,350 and 15,750/52,500 levels would be major obstacles. India VIX has grown the most since May 2021 at 15 percent. Until the market crosses the 15750/52500 level and closes at the 15750/52500, the strategy should be of reducing the weak long positions."
