Domestic equity benchmarks ended marginally lower on Wednesday, halting a three-day gaining streak as losses in HDFC Bank and Infosys offset gains in State Bank of India and Reliance Industries. The BSE Sensex ended about 100 points lower, while the NSE Nifty ended at 25,942.90. 13 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Auto Index's 1.3% gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 1.8%. The market breadth tilted in favour of sellers.
Nifty 50 index formed a small bearish candle with a higher high and higher low signaling consolidation with a positive bias near the 26,000 mark. According to brokerages, stock specific action remains in focus towards the end of the quarterly earning session. ''Looking ahead, a sustained move above the psychological 26,000 level could open the door for further upside toward the 26,200-26,300 resistance zone in the coming sessions,'' said analysts at Bajaj Broking.
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''However, a failure to hold above 26,000 may lead to sideways consolidation within the range of 25,500-26,000. The overall bias remains positive, and we continue to view dips as buying opportunities,'' they added. Nifty 50's immediate support is placed at 25,500-25,400, which coincides with last week's breakout zone and the 20-day EMA, according to the brokerage.
Nifty Bank
Bank Nifty formed a bullish hammer like candle with a small real body and long lower shadow signaling consolidation amid stock specific action. PSU banking stocks continues to outperform the private banking stocks. Going ahead, a move above Monday's high of 60,876 will lead to further upside toward the 61,200 and 61,800 levels in the coming sessions. ''Failure to move above Tuesday high will signal some consolidation in the range of 59,800-60,800 levels. Bias remains positive and dips should be used as buying opportunity, with short term support seen at 59,500-59,200 levels being the confluence of the 20- and 50-days EMA,'' said Bajaj Broking.
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Market Recap
The Indian rupee slipped in late trading on Wednesday as dollar bids from foreign banks picked up, sparking modest pressure in a session that otherwise saw the rupee trade on a quiet note. The rupee closed at 90.70 per dollar, down 0.1% from its close in the previous session. BSE Sensex and Nifty 50, were little changed on the day, while the MSCI's gauge of Asian shares outside Japan was up about 1%.
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