The market snapped the three-day winning streak as selling emerged in IT, bank and consumer durables stocks on weak global cues. The sentiments were hit after the US Federal Reserve raised interest rates for the second time this year and hinted at two more hikes in 2018.  The Sensex fell 139.34 points, or 0.39 per cent, to settle at 35,599.82 while the Nifty 50 fell 48.65 points, or 0.45 per cent, to settle at 10,808.05. The BSE Mid-Cap index fell 0.08 per cent Small-Cap rose 0.07 per cent. Both these indices outperformed the Sensex.

The market breadth was negative with 1,232 shares rose and 1,393 shares fell. A total of 134 shares were unchanged.

Among the sectoral indices on the BSE, IT (-1.4 per cent), Teck (-1.32 per cent), Consumer Durables (-0.89 per cent ) and Capital Goods (-0.81 per cent) were the worst hit.

Technical view

Chandan Taparia, derivatives & technical analyst at Motilal Oswal Securities, said, “The Nifty closed negative and formed a small bearish candle on the daily scale while the weekly candle is forming a small-bodied candle with bigger higher shadows. Now, it has to continue to hold above 10,770 zones to extend its move towards 10,888 levels while immediate support exists at 10,770 then 10,720 zones.”

Market view

Jayant Manglik, president, Religare Broking, said, “The bears took control over the Indian markets…The Nifty touched an intra-day low of 10,774 and closed in the red. The sentiments were dampened due to rate hike and hawkish commentary by the US Fed. We believe one should remain cautious in the market due to global sentiments, movement of INR (vs USD) and crude oil prices. Monetary policy meetings in Europe and Japan would be closely tracked. Citing high volatility in the indices in the near term, we advise traders to strictly hedge their risky leveraged positions. However, investors can continue to focus on fundamentally sound companies on dips.

—Ashwin Punnen