Taking Stock: Markets snap 7-day winning run, Nifty slips below 23,500 as all sectors struggle

The Nifty had also slipped below the crucial level of 23,500 intraday.

The Indian benchmarks--Nifty 50 and Sensex drowned in a sea of red on March 26, halting a seven-day winning streak amid broad based selling across the market. Concerns over the imposition of Trump's tariffs from April 2, weakness in the Indian rupee and a rise in oil prices were some factors that sparked profit booking in the market.

The Sensex opened on a strong note, touching an intraday high of 78,167.87, however, selling pressure in select heavyweight stocks led to a sharp decline, dragging the index down in the red. Similarly, the NSE Nifty initially posted a marginal uptick but later reversed course and slipped below the crucial 23,500 mark.

By the closing bell, the Sensex had declined by 728.69 points or 0.93 percent to settle at 77,288.50, while the Nifty ended 181.80 points or 0.77 percent lower at 23,486.85. Market breadth remained weak, with 892 stocks advancing, 2,992 declining, and 100 remaining unchanged.

All sectoral indices ended in the red, with Nifty Media, Nifty PSU Bank and Nifty Realty taking the sharpest cuts of 1-2 percent.

IndusInd Bank, Trent, Hero MotoCorp, HCLTech and Bharti Airtel were among major gainers on the Nifty, while losers were NTPC, Tech Mahindra, Cipla, BPCL and Bajaj Finance.

BSE Midcap index shed 0.7 percent and Smallcap index was down 1.5 percent, reflecting in the negative market breadth.

Several stocks also touched their 52-week highs, including names like Aavas Financiers, Chambal Fertilisers, SBI Card and TCPL Packaging, among others. Click here to view more.

Outlook for March 27

Shrikant Chouhan, Head Equity Research, Kotak Securities

Today, the benchmark indices witnessed profit booking at higher levels, with the Nifty ends 182 points lower, while the Sensex was down by 729 points. Among sectors, almost all the major sectoral indices registered intraday selling pressure at higher levels but Media Index lost the most, shed 2.40 percent. Technically, after a muted open, the market consistently faced selling pressure at higher levels. From the day's highest points, the market corrected over 285/950 points. Additionally, it has formed a bearish candle on the daily charts, which supports further weakness from the current levels.

We are of the view that, as long as the market is trading below 23,600/77500, weak sentiment is likely to continue. On the downside, it could retest the levels of 23,400-23,330/77000-76800. On the other hand, if it moves above 23,600/77500, the sentiment could change, and the market could bounce back up to 23,700-23760/77800-78000. Contra traders can take a long position near 23,330/76800 with a strict stop loss at 23,300/76650.

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates 

Technically, on the daily chart, Nifty formed a red candle, indicating weakness. Moreover, the index has broken its 100-Days Simple Moving Average (100-DSMA), placed near 23,500, which will now serve as an immediate hurdle for Nifty, followed by 23,800. On the downside, 100-Days Exponential Moving Average (100-DEMA) support is placed near 23,390, while the 75-DEMA is positioned near 23,250, acting as key support levels for the index. Due to the F&O expiry, short-term volatility is expected, so traders are advised to remain cautious.

Similarly, the Bank Nifty index opened on a positive note but, after an initial upmove, index witnessed heavy profit booking and settled the day on a negative note at 51,209. Technically, Bank Nifty formed a red candle on the daily chart, indicating weakness. On the downside, the 200-Days Simple Moving Average (200-DSMA), placed near 50,990, will act as key support for the index, followed by the recent breakout point of 50,640. On the upside, 51,880 and 52,000 will act as strong resistance levels. Traders should monitor these levels for potential trading opportunities.

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty has extended its correction as it has fallen below the support level of 23,600, leading to a decline towards 23,400. On the smaller time frame, the index has dropped below the near-term moving average. The trend looks bearish, with a negative crossover in the RSI (14) on the hourly time frame. On the lower end, support is placed at 23,300, up to which the current decline might extend. However, any fall below 23,300 might raise questions about the recent sharp rally from 21,964. Resistance is placed at 23,550, above which sentiment might improve.