Sensex, Nifty end in red for second day on profit-booking

The benchmark stock market indices closed sharply lower, a day ahead of the monthly futures and options expiry. Markets witnessed a highly volatile trading session, which was marked by weak global cues but benchmark Nifty once again took support near the 10 day SMA or 17,600 and reversed sharply.

The Sensex was down 254.33 points or 0.43 percent at 59,413.27. The broader Nifty was down 37.30 points or 0.21 percent at 17,711.30. About 1830 shares have advanced, 1371 shares declined, and 151 shares are unchanged.

HDFC, Kotak Mahindra Bank, Asian Paints, UltraTech Cement and HUL were among the major losers on the Nifty. Coal India, NTPC, Power Grid Corporation were among the gainers.

"Nifty traded in a sideways range today. It closed at 17,710 down by 35 points after taking support in range 17,58017,620 and faced profit booking in its resistance range of 17,780-17,820. The Nifty is in a bullish trend and buy on dips with strict stop loss is suggested in the current markets," said Gaurav

Udani, CEO & Founder, ThincRedBlu Securities.

After a negative opening, the benchmark index recovered the maximum loss and settled above 17,700 levels with a marginal loss of 0.2 percent while Banknifty ended at 37,743 levels with a loss of 202 points. Sachin Gupta, AVP-Research, Choice Broking said, "Technically, the index is hovering above the Middle Bollinger Band formation and also moving above 50-SMA, which indicates a bullish presence in the counter. Moreover, the index witnessed a positive crossover in Stochastic. At present, the Nifty has immediate support at 17500 while resistance lies at 17,900/17,950 levels."

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "After Tuesday's sharp intraday fall, the index has formed a inside candle pattern which indicates indecisiveness between bulls and bears. In the run up to monthly F&O expiry the market may continue with the narrow range activity. For day traders, 17,800 -17,850 would be the key resistance level while 17,625-17,590 could act as a strong support."