The Indian stock market extended losses on Tuesday, with Sensex and Nifty closing lower as elevated crude oil prices, Fed rate hike worries, booming IPO market and other factors continue to contribute to the slow grind down in the market.Sensex dropped around 555 points to end the session at 75,578 while Nifty 50 lost 144 points to close at 23,635. Broader markets however closed in the green, with Nifty Midcap 100 and Nifty Smallcap 100 rising up to 0.2%.ICICI Bank and Axis Bank shares fell around 2% each, while those of UltraTech Cement, Kotak Mahindra Bank, Reliance Industries and HDFC Bank shares fell more than 1% each. Bucking the trend, BEL and Adani Ports shares rose over 1%.Among the sectors, Nifty Private Bank dropped around 1% to lead losses, while Nifty Pharma gained nearly 1%. The overall market breadth remained negative, with NSE seeing 1,711 advances against 1,833 declines, while 104 stocks remained unchanged.Technical view on NiftyNifty 50 slipped again as rising crude oil prices are expected to put inflationary pressure, said Rupak De, Senior Technical Analyst at LKP Securities. He noted that the benchmark index found initial support near the previous swing low. In addition, on the daily timeframe, the RSI is showing a positive divergence, suggesting a potential shift in momentum.“Going forward, 23,600 is likely to act as a crucial support for the Nifty. If the index holds above 23,600, we may see a decent recovery, which could take the Nifty towards 24,000 and higher in the short term,” he added.Disclosure: "This article has been written by Debaroti Adhikary, who is not a Sebi-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment."
Sensex drops 555 points, Nifty closes below 23,650 as market extends losses. How long will the downtrend continue?
On Tuesday, Indian stock markets experienced a decline, with both Sensex and Nifty ending lower amid rising crude oil prices and concerns over potential Fed interest rate hikes. However, mid and smallcap segments managed to gain ground, finishing positively. Analysts warn that this negative trend might persist short-term, advising investors to favor large-cap stocks in their portfolios.
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