Benchmark Indices Nifty 50 and Sensex Close Lower on Tuesday
The domestic benchmark equity indices, Nifty 50 and Sensex, ended in the red in Tuesday’s session. The Nifty 50 fell 0.35% to 21,665.80 points, while the Sensex dropped 0.53% to 71,892.48 points. The decline was mainly attributed to the performance of the information technology (IT), financials, and auto stocks. The broader market also finished lower, with pharma, oil and gas, and metals stocks witnessing some buying.
Market Sentiment Impacted by Geopolitical Tensions and Crude Oil Price Increase
The market’s sentiment on Tuesday was impacted by fears about growing geopolitical tensions and a notable increase in the price of crude oil. Reports in the media state that Houthi militants backed by Iran attacked a Maersk container ship in the Red Sea, but US helicopters stopped them. This news led to concerns about potential disruptions to global trade and crude supplies.
Investors Cautious Ahead of FOMC Meeting Minutes
Investors became more cautious ahead of the release of the FOMC meeting minutes on Wednesday. The minutes would provide insights into the Federal Reserve’s outlook on monetary policy and potential interest rate hikes. Additionally, India would release PMI data related to manufacturing on Wednesday, which would serve as a guide for investors throughout the week.
Auto and Pharma Stocks Decline, Oil and Gas and Metals Witness Buying
Auto stocks declined on below-expected volume numbers, contributing to the overall negative sentiment in the market. However, pharma stocks were a standout due to catch-up in the US economy. Meanwhile, oil and gas and metals stocks witnessed some buying, which helped counterbalance the losses in other sectors.
Day Trade Guide: Nifty 50 Witnesses Profit Booking, Bank Nifty Ends Slightly Weak
The Nifty 50 witnessed some profit booking on Tuesday after resisting near the 21,800 zone for the last three sessions. It slipped down to the 21,550 levels but ended the day with a pullback to the 21,650 zone. In terms of the Bank Nifty, there was also some heavy profit booking, with major frontline banking stocks losing steam. The index needs to sustain above the crucial support zone of 46,300 levels to maintain a positive bias overall. The support for the day is seen at 21,500 zone while the resistance is seen at 21,800 level. Bank Nifty would have a daily range of 47,300–48,000 levels.
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Analyst comment
Negative news. The benchmark indices Nifty 50 and Sensex closed lower due to the performance of IT, financials, and auto stocks. Geopolitical tensions and a rise in crude oil prices also impacted market sentiment. Investors are cautious ahead of the FOMC meeting minutes and PMI data release. Auto stocks declined, while pharma, oil and gas, and metals stocks saw some buying. Nifty 50 witnessed profit booking and Bank Nifty ended slightly weak.
