After a positive opening, the index wiped out early losses and showed profit booking from higher levels, and closed the session at 17,999.20 levels with a loss of 110.25 points. Bank Nifty closed the session at 38,307.10 level with a loss of 395.25 points.

Hectic selling in late trades in banking, oil and gas, realty stocks weighed heavily on benchmark indices as higher inflation remains a key concern for markets.

The Sensex was down 396.34 points or 0.65 percent at 60,322.37. The broader Nifty was down 110.30 points or 0.61 percent at 17,999.20. About 1,496 shares have advanced, 1,639 shares declined, and 122 shares are unchanged.

On the sectoral front, the Nifty Auto index is up over 2 percent and the IT index added 0.5 percent. On the other hand, bank, pharma, and energy indices were down 1 percent each. Stocks like Maruti, M&M, Tata Motors, Hero Motors, and Tech Mahindra were the top gainers while Shree Cements, Tata Consumers, State Bank of India, Reliance, and IndusInd Bank were the prime laggards.

Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "Nifty is unable to sustain at higher levels. It made a bearish bar today . It closed at 19,990, down by 120 points. It has support in 17,950-17,850 range and resistance in 18,100-18,200 range. Traders are suggested not to initiate new long positions till we see a closing above 18200 with higher than average volumes."

Palak Kothari, Research Associate, Choice Broking said, "Technically, the index has formed a bearish candle on the daily time frame, which shows weakness in the counter. On the hourly chart, the index has been trading with lower highs lower lows, which point out some corrections for the next trading session. Furthermore, the index has given closing below 21 DMA as well as the Stochastic indicator is trading negative crossover, which points to weakness in the counter for the next trading sessions. At present, the index has a support level of 17,800, while resistance is at 18,250 levels."

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "On intraday charts, the Nifty has formed a lower top formation which is broadly negative. For day traders, 18060 would be the immediate resistance level, and if the index slips below the same the correction wave could continue up to 17,900-17,830 levels. On the other hand, 18,060 would be the key intraday breakout level for the bulls, and above the same the index could move up to 18,100-18,1235 levels."

Deepak Jasani, Head-Retail Research, HDFC Securities, said, "The Nifty respected the doji formation on the previous day and sold off on November 16. 18,102-18,139 is the resistance band now for the Nifty while 17,874-17,906 is the support band. Volumes and advance decline ratio continue to disappoint."