The benchmark equity index Nifty 50 ended Monday’s trading session on a negative note. The NSE Nifty 50 closed 82.10 points or 0.38% lower to settle at 21,771.70 points. While S&P BSE Sensex lost 354.21 points or 0.49% to settle at 71,731.42 points. Similarly, Nifty Bank lost 145.40 points or 0.32% to settle at 45,825.55 points.
On the sectoral front, banks and consumer durables stocks dragged indices. The broader indices also ended in the red, with largecap and midcap stocks losing the most.
The gainers include Tata Motors, Coal India, Sun Pharma, Cipla, and BPCL. The Indian Volatility Index (India VIX) closed 6.19% higher.
“The Nifty opened on a positive note however during the day it witnessed selling pressure and ended the day on a negative note down ~82 points. On the daily charts we can observe that the Nifty has witnessed follow-through selling pressure from the upper boundary (22000). On the hourly momentum indicator, we could witness a negative divergence which indicated loss of momentum on the upside. Overall, the range bound trading action is likely to continue until we get a decisive close below the extremes of the broad range 22000 – 21200. The momentum setup on the daily and hourly time frames are providing divergent signals which again suggests sideways price action. Thus, parameters are suggesting that the consolidation is likely to continue. Stock specific action and sector rotation is likely to continue during this period of consolidation. Key support levels are 21640 – 21600 while immediate hurdle zone is placed at 21950 – 22000,” said Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas.
“Bank Nifty witnessed follow-through selling pressure from the previous trading session. It closed below the key averages indicating weakness. Overall, the Trend remains sideways and the range of consolidation is likely to be 45000 – 47000,” Gedia added.
“The Indian market witnessed a sharp fall during the final hours of today’s trading. The robust US job data for January indicates that the expected rate cuts from the Fed in the coming year may be less imminent. This is reflected in the recent sharp climb in US bond yields to above 4% levels, which prompted investors to book profit from the post interim Budget rally amidst elevated valuations. However, the current drop in crude prices, provides support and restrains the decline,” said Vinod Nair, head of research at Geojit Financial Services.