Nifty closed on a negative note on Tuesday while majority of the sectoral indices also closed in the red.
At close on Tuesday, Nifty50 slumped 90 points or 0.43 per cent to 20,906, while Sensex was down 377 points or 0.54 per cent to 69,551.
Among the most negatively impacted sectors were Nifty Realty and Nifty Energy, which fell by 1.75 per cent and 1.31 per cent, respectively, said Vaibhav Vidwani, Research Analyst at Bonanza Portfolio.
Nifty50 had a correction period on Tuesday, because higher food costs are expected to raise India’s November inflation higher than expected, which could postpone RBI policy rates reduction, he said.
BPCL, Apollo Hospitals, Maruti Suzuki, Sun Pharma and Eicher Motors were the biggest losers on the Nifty, while HDFC Life, UltraTech Cement, Bajaj Auto, SBI Life Insurance and Axis Bank were the top gainers.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said the Bank Nifty index encountered resistance at higher levels, facing selling pressure and struggling to breach the 47,500-mark.
The lower-end support for the index is positioned at 46,800, and a decisive break below this level could trigger additional downside movement toward the 46,400 levels.
With weekly expiry approaching, heightened volatility is anticipated. Traders are advised to exercise caution and implement strict stop-loss measures on both sides of the market, Shah said.
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