Level of 11,549 is now seen as a crucial support for Nifty, Angel Broking says.The SP BSE Sensex and NSE Nifty 50 Indexes erased gains and were trading with a negative bias led by declines in Asian Paints, Kotak Mahindra Bank, Bharti Airtel, HDFC Bank and HDFC.
The Sensex fell as much as 231 points from day's highest level of 38,850.66 and the NSE Nifty 50 index slipped below psychological level of 11,600 after hitting intraday high of 11,638.
In the opening deals, Sensex and Nifty moved higher amid volatile trade with IT stocks supporting the up move after rupee depreciated to 69.73 per dollar.As of 11:36 am, the Sensex traded 0.09 per cent or 33 points lower at 38,667 and the NSE Nifty 50 Index was down 0.16 per cent or 19 points at 11,585.40.Level of 11,549 is now seen as a crucial support for Nifty.
A sustainable move below this would result into an extended correction towards 11,500-11,465 levels.
On the flipside, the immediate resistance is now placed in the zone of 11650 - 11710 levels, Sameet Chavan, chief analyst-technical and derivatives at Angel Broking said."At this juncture, the ideal strategy would be not to trade aggressively and one needs to be extremely stock specific when it comes to a momentum trade," he added.Thirteen of 19 sector gauges compiled by BSE were trading lower led by the SP BSE Telecom Index's nearly 2 per cent decline.Eight of 11 sector gauges compiled by National Stock Exchange were trading lower led by the Nifty PSU Bank Index's 0.74 per cent decline.
Metal and Media sector gauges also fell around 0.7 per cent each.
On the flipside, Nifty IT Index was top gainer, up 0.6 per cent.Mid- and small-cap shares were underperforming their larger peers as the Nifty Midcap 100 Index declined 0.8 per cent and the Nifty Smallcap 100 Index fell 0.6 per cent.Asian Paints was top loser in the Nifty 50 basket of shares, down 3.36 per cent to Rs 1,446.05.
Bharti Airtel, Indiabulls Housing Finance, Adani Ports, JSW Steel, Kotak Mahindra Bank, UPL, Tata Steel, Hindalco, Bajaj Finance and Vedanta were also among the laggards.On the other hand, HCL Technologies, Wipro, Coal India, Yes Bank, Bajaj Auto and Indian Oil were among the gainers.Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.
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