After hitting record levels, benchmark Indices erased all the day’s gains and closed on a negative note with Sensex closing at 52,861.18 (-0.04 percent) and Nifty 50 closing at 15,818.25 (-0.10 percent).
Ultratech Cement and Shree Cements were the top gainers while Tata Motors and Gland Pharma were the top losers in Nifty 50. Auto, IT, Metals and pharma stocks witnessed selling pressure while buying interest was seen in some financial stocks. Tata Motors plunged 8 percent due to semiconductor shortage issue and expectation of negative EBIT margin by JLR. Immediate resistance levels for Nifty 50 are 15,900 while key support levels for Nifty 50 is 15,600, said Mohit Nigam, Head-PMS, Hem Securities.
On the sectoral front, the Nifty auto, IT, metal IT, METAL & PSE index has dragged the index lower while the banking, cement sector contributed some gains for the day.
According to Sumeet Bagadia, Executive Director, Choice Broking, "Technically, the Nifty has faced resistance at 15,900 levels and slipped down further, which indicates major resistance at that level. Moreover, on the daily chart, the index has formed the Gravestone Doji Candlestick pattern, which indicates a further reversal. In addition, an indicator MACD is still showing negative crossover, which suggests a downside move for the near term. At present, the Nifty seems to have resistance at 15915 levels while immediate support comes at 15,635 levels."
The Goods and Service Tax (GST) collections for June 2021 fell to Rs 92,849 crore. This is the first time in nine months that monthly GST collection has slipped below the Rs 1 lakh crore-mark.
Volumes on the NSE were higher than recent averages. Among sectors, Power & Banks gained the most while Auto, IT and energy were the main losers. BSE midcap index ended marginally higher, while smallcap index fell 0.26 percent, said Deepak Jasani, Head-Retail Research, HDFC Securities.
"Nifty corrected mildly after a two-day rise. This happened with higher volumes. Nifty also made a double top at 15,914 levels. On daily charts it has made a bearish inverted hammer like pattern. Hence at 15850+ levels, a lot of selling pressure seems to be emerging from investors. 15,738 is the support for the Nifty in the near-term while 15,915 continues to be resistance," Jasani said.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said, "Technically, the short-term structure of the market is still bullish. However, on a daily chart, the Nifty/Sensex has formed Gravestone Doji candlestick kind of pattern, which indicates short-term weakness. In the near future, 15,870/ 52,900 should be the key level to watch out, below the same correction wave is likely to continue up to 15,775-15,720/ 52,850-52,500 levels. On the flip side, if the market succeeds to trade above 15,870 /52,900, we can expect continuation of uptrend wave till 15,925-15,965/ 53,200-53,400 levels."