Further downsides likely if 11475 broken
The weakness came on the back of renewed concerns over trade tensions between the United States and India.
The market continued to be in the correction mode on Wednesday with both Sensex and Nifty ending in the red.
The weakness came on the back of renewed concerns over trade tensions between the United States and India. Benchmark indices ended a volatile session lower with the Nifty falling below 11500 at close for first time since May 17 this year. The Nifty Index ended 57 points or 0.49 per cent lower at 11498.9, while the Sensex closed 173 points lower at 38557.
The broad market indices like the BSE Mid Cap and Small Cap indices lost more, thereby underperforming the Sensex/Nifty. The market breadth was negative on the BSE/NSE. Sectorally, there were no gainers. The top losers were the BSE Capital Goods, Realty, Metal and Auto indices.
Technical View
"Technically, the Nifty has resumed the downtrend and further downsides are likely once the immediate support of 11475 is broken. Any pullback rallies could find resistance at 11594," says Deepak Jasani, Head Retail Research, HDFC Securities.
"Nifty closed flat in the negative territory in the last trading session and with that it closed in red zone for the fourth consecutive day. The Index continues to form lower tops and lower bottoms and till that continues the overall trend remains negative. The Index has a resistance at 11,590 and only if those levels get taken off the trend will reverse from down to up. The support on the lower side is pegged at 11400 levels," Jay Thakkar, Head-Technical and Deri-vatives Research & AVP-Equity Research, Anand Rathi Shares and Stock Brokers.
The underlying trend of Nifty remains choppy with weak bias. Until we see a sharp sustainable move above 11600-625 levels, the broader market trend expected to be choppy in the short term, analysts said.
Market View
"Markets have been under pressure since the past few trading sessions. Some respite was seen as we consolidated around the 11500 mark for the Nifty50. 11450 remains a critical level for the Index, Expect some consolidation around current levels before the Index gives a bounce back towards previous highs. A breach of 11450 is expected to invite further selling pressure pushing the Index towards 11000-11100. We expect volatility to remain high for the near term with private banking expected to outperform and some buying interest seen in the defensive space, said Sahaj Agrawal, Head of Derivatives, Kotak Securities.