10600 is a key support range

The market on Monday ended with huge losses as frontline stocks came under selling pressure and closed lower for the eighth consecutive trading sessions.

The Sensex plunged 310.51 points or 0.87 per cent to 35,498, while the Nifty 50 fell 83.45 points or 0.78 per cent to 10,640. Investors turned cautious on fears of an escalation in tensions between India and Pakistan in the aftermath of the Thursday’s Pulwama terror attack.

The broad market saw sharp selling with both the Mid- Cap and SmallCap indices falling over 1 per cent. The market breadth as 879 shares rising and 1676 shares falling on BSE. Major Sensex losers were TCS ( 2.91 per cent), ITC ( 1.95 per cent) and Yes Bank ( 2 per cent).

The investors are in cautious mood ahead of the RBI board meet and the sharp rise in the volatility Index, India VIX, further dampened the sentiment.

Technical View

Mustafa Nadeem, CEO, Epic Research said, “For Nifty; support is at 10600 on a closing basis. It has been the support level the bulls have been relying on for the last two months. A breach of this would trigger a large bearish momentum that can be extended to lower levels of 10400- 10150. It is about time we see a breakout.”

Jayant Manglik, president, Religare Broking, said, “We feel traders have no option but to follow the prevailing bias and prefer hedged positions instead of naked trades. The Nifty has next major support at 10,500.