The market ended lower as sentiments were hit by currency crisis in Turkey that could trigger contagion into other markets. The S&P BSE Sensex shed 224.33 points, or 0.59 per cent, to settle at 37,644.90, while the Nifty 50 Index was down 73.75 points, or 0.65 per cent, to close at 11,355.75.
The broad market also saw huge selling with as the BSE Mid-Cap Index ended 0.70 per cent lower, and the Small-Cap Index was down 0.78 per cent.
Jay Thakkar, CMT, head, technical and derivatives Research, AVP Equity Research, Anand Rathi Shares and Stock Brokers, said: “The Nifty closed in the negative territory for the second consecutive day, and this has led to a reversal in the short-term from up to down. The short-term target comes to 11,287 and below those at 11,200, whereas the resistance is pegged at 11,415 levels and above those at 11435 levels. The hourly momentum indicator has gone into sell mode which is an early sign of reversal. Like the Nifty, the Sensex too closed in the negative territory and is likely to correct further till 37,400 to 37,250. The five waves rising structure seems to have completed and a retracement of the same have started. On the upside, the resistance is pegged at 37,850 levels.”
Jayant Manglik, president, Religare Broking, “Markets started the holiday-shortened week on feeble note and lost over half a per cent. Sentiment dampened in reaction to the news of Turkish crisis and further weakness in rupee against the US dollar. In line with other global markets indices, the Nifty also opened lower and traded range bound thereafter. Though it tried recouping some losses in the middle but selling pressure re-emerged in the latter half and pushed the index to day's low.
“We feel any decline due to external factors would be short-lived and traders should continue with “buy on dips” approach. In fact, it's healthy to have such corrective phase as it eliminates weak hands. However, it also causes trouble to traders as stock selection and position management has become difficult. We suggest keeping close eye on global development along with prevailing earnings season for cues.