On Tuesday, the Nifty experienced a negative close with a 0.43% drop, shedding 90 points to reach 20,906, while the Sensex also dipped by 0.54%, down 377 points at 69,551. Notably, sectors like Nifty Realty and Nifty Energy bore the brunt of the decline, plummeting by 1.75% and 1.31%, respectively, according to Vaibhav Vidwani, a Research Analyst at Bonanza Portfolio. The correction in the Nifty50 was attributed to expectations of higher November inflation due to increased food costs, potentially delaying a reduction in RBI policy rates. Among the top losers on the Nifty were BPCL, Apollo Hospitals, Maruti Suzuki, Sun Pharma, and Eicher Motors, while HDFC Life, UltraTech Cement, Bajaj Auto, SBI Life Insurance, and Axis Bank emerged as the top gainers. Kunal Shah, a Senior Technical & Derivative Analyst at LKP Securities, noted resistance at higher levels for the Bank Nifty index and advised caution due to anticipated heightened volatility with the approaching weekly expiry. Traders were encouraged to implement strict stop-loss measures on both sides of the market.
Key Points:
1. Nifty closed negatively on Tuesday, with a 0.43% decline, settling at 20,906, and the Sensex dropped 0.54%, down by 377 points to 69,551.
2. Nifty Realty and Nifty Energy sectors were notably affected, witnessing declines of 1.75% and 1.31%, respectively, according to Vaibhav Vidwani, Research Analyst at Bonanza Portfolio.
3. The correction in Nifty50 was attributed to concerns about higher food costs, potentially leading to higher-than-expected November inflation in India, possibly delaying a reduction in RBI policy rates.
4. Major losers on the Nifty included BPCL, Apollo Hospitals, Maruti Suzuki, Sun Pharma, and Eicher Motors, while HDFC Life, UltraTech Cement, Bajaj Auto, SBI Life Insurance, and Axis Bank were the top gainers.
5. Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, noted resistance in the Bank Nifty index at higher levels, facing selling pressure. The index's lower-end support is at 46,800, and a break below this level could lead to further downside movement, with increased volatility expected ahead of weekly expiry. Traders are advised caution with strict stop-loss measures.
(With Agency Inputs)
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