Mumbai: The equity markets finally snapped their longest winning streak in last three years as investors turned slightly cautious as the equity indices reached their important resistance levels.
The Nifty fell 84.5 points in the intra-day trade from its days high of 10,594.20 amidst heavy selling in bank and auto sector stocks. The Nifty finally ended the day at 10,526.20, down 22.50 points or 0.21 per cent.
The Sensex fell 321.77 points in the intra-day from its days high of 34,591.81 to close the session at 34,331.68, down 63.38 points or 0.18 per cent from its previous days close.
On Tuesday, both the equity indices had logged their ninth consecutive session of gains, which was their longest winning streak since September 2014. “There was clearly some gush seen from the traders’ fraternity as they turned skeptical when Nifty neared the 10,600 level mark. We are not surprised by Wednesday’s sharp cut as we have been continuously advocating about staying light if Nifty enters the strong resistance zone of 10,580 – 10,640. It is not necessary that we will see correction resuming at this point. However, one should take this as a warning and any rally towards the resistance zone should be taken as an opportunity to book profits,” said Angel Broking’s Sameet Chavan.
According to the provisional data, FPIs offloaded shares worth '915.71 crore. The shares of Axis Bank slumped 2.60 per cent while that of M&M, IndusInd Bank and Hero Motocorp dropped 1.55 per cent, 1.23 per cent and 0.97 per cent respectively. “Domestic markets started the day on a positive note and drifted higher in early trade only to succumb to volatility and consequently swung between the positive and negative zone, through the day. With volatility coming to the fore, no clear trend seems to be emerging for now,” said BNP Paribas MF’s Abhijeet Dey.
