After a positive start all major indices succumbed to the selling pressure in the second half of the trading session on Tuesday.
The Sensex was up 263.84 points at 37950.21 in the early morning trade before coming off day's high due to mounting selling pressure which led to the Index touching a low of 37359.03, an intra-day fall by 591.18 points.
The volatile trading session saw the Sensex closing at 37397.24 points down by 289.13 points or 0.77 per cent. The Nifty-50 Index closed at a five month low at 11085.40 down by 103.80 points or 0.93 per cent.
The border market saw much severe selling with BSE Mid-Cap Index down 1.58 per cent and BSE Small-Cap Index down 2.13 per cent.
Among the sectoral indices only the Nifty Bank was hit hard as it fell 1.72 per cent, the BSE Bankex Index fell 1.86 per cent. The other sectoral indices that fell sharply included BSE Metal (-3.25 per cent), Auto (-2.12 per cent), Oil & Gas (-2.14 per cent) and Healthcare (-1.66 per cent).
Technical View
Rohit Singre, Senior Technical Analyst, LKP Securities said, "The Nifty-50 Index opened marginally higher but again failed to sustain on higher levels and showed sell off for second day and closed the day at 11085 with loss of 104 forming bearish candle on daily chart. Index managed to breach strong support of 11140 and closed below same hinting some more pressure can be seen in coming session if it continues to trade below 11140 zone. Immediate support for the Nifty is coming near 11000 mark and resistance is coming near 11140-11220 zone.
"The Nifty bank showed strong sell off in second half and closed the day at 28791 with loss of 504 points, now support for Index is coming near 28600-28450 zone and resistance is coming near 29000-29250 zone" Singre said.
Shrikant Chouhan, Senior VP & Head - Technical Research, Kotak Securities said, "The market participants are under fear as they have not even respected the long term average of Nifty closing prices. Wednesday will be a crucial day for markets, as the outcome on interest rates from Federal Reserve would decide the trend of global liquidity. The market is turning attractive in the medium term as even though frontline stocks are down nearly by 15 per cent to 20 per cent. Pessimism is increasing amongst major players."
Market View
Deepak Jasani, Head- Retail Research, HDFC Securities said, "Carrying on from the previous session, markets continued to dive into negative territory on Tuesday. The Nifty ended below 11100 level on the back of selling in PSU banks, metal and auto. The latest episode of missing promoter of Café Coffee Day has dealt a sentimental blow to investors who are already undergoing a lot of pain. The repurcussions of this event on other entities is still being calculated.
Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas said, "Poor Q1FY20 earnings, slowdown in domestic consumption coupled with the ongoing NBFC crisis have dampened investor sentiments on the street."
