Sensex, Nifty end in red for second day straight; are bears now in control on Dalal Street?

IT stocks along with HDFC and HDFC Bank were among the top index drags.
(Image: REUTERS)

Domestic benchmark indices ended in the red for the second day straight on Tuesday. S&P BSE Sensex closed 243 points lower at 47,705 while the Nifty 50 index was just shy of 14,300. Sensex and Nifty began the day with gains and extended those gains during the day, however, they failed to sustain at the highs and slipped to close in the red. IT stocks along with HDFC and HDFC Bank were among the top index drags. Midcap and smallcap indices outperformed benchmark indices, Volatility slipped but still holds above 22 levels. Bank Nifty closed in the red.

Vinod Nair, Head of Research at Geojit Financial Services –

“Indian markets witnessed a bounce-back in its opening trade, however, failed to hold onto its early gains due to weak global cues and the possibility of a stricter lockdown in Maharashtra. Despite the vaccine drive kindling hopes of recovery, the trend in the market will depend on positive developments like decreasing covid cases and lifting restrictions. IT and FMCG were the sectoral laggards while mid and small-caps outperformed.”

Rohit Singre, Senior Technical Analyst at LKP Securities –

“Index opened a day with a strong gap but profit booking from highs led the index to close in the negative note at 14294 with loss of half per cent and formed a strong bearish candle on the daily chart. The index has base around 14200-14250 zone if managed to sustain then some pullback possible if not saved then we may see next leg of a move towards 14000 marks which is another strong support on the downside, on the higher side 14400-14500 will be stiff hurdle also can be considered as initial profit booking levels.”

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments –

“The markets marginally threatened the 14200 level but was swift to bounce from there. If we break this level, we could fall rapidly to 13800-13900 and an extreme sell situation thereafter can take the Nifty down to 13600 as well.”

Manish Shah, Founder, Niftytriggers –

“Nifty saw a wide-ranged day with price closing at the low of the day. The previous day’s candle was not confirmed, and this is a bearish development. The only solace is that the support at 14250-14300 holds. Nifty has tested the support at 14250-14300 four times in the recent past. The trend line that is coming up from March 2020 is also violated. Prima facie the trend at least on the daily time frame is pointing to lower values if 14250-14300 is violated. Nifty needs to move above 174750 for the rally to continue. On the lower end, a break below 14250-14300 and the index could see a drop to 13900-13650.”

Mohit Nigam, head, PMS & advisory, Hem Securities-

“Markets opened higher this morning on positive news about mass vaccination drive from May 1 onwards. However, it failed to sustain the higher levels in the second half due to weak Europe & US markets. Strong positive momentum is seen in the pharma space since the past few days & we can look in this space for short term opportunities. A withdrawal of Rs 5,000crs by FIIs in the month of April might indicate changing sentiments of foreign funds coming into India in the current scenario. 14,200 levels continue to support and if the market breaches that, then we can see a 500–700 points dip in Nifty quickly.”