The Indian benchmark indices failed to build on opening gains and traded lower throughout the session on May 6 with Nifty closing below 24400 amid selling across the sectors barring auto.
At close, the Sensex was down 155.77 points or 0.19 percent at 80,641.07, and the Nifty was down 81.55 points or 0.33 percent at 24,379.60.
Adani Enterprises, Eternal, Jio Financial, Trent, SBI Life were among major losers on the Nifty, while gainers were Hero MotoCorp, Tata Steel, Bharti Airtel, M&M, HUL.
Except auto, all other sectoral indices ended in the red with PSU Bank index shedding nearly 5 percent, Realty index fell 3.5 percent, while pharma, consumer durables, media, oil & gas, power were down 1-2.6 percent.
BSE Midcap and Smallcap indices shed 2 percent each.
Overnight, the S&P 500 fell to snap its longest streak of gains in 20 years on Monday as investors assessed U.S. President Donald Trump’s latest tariff announcement ahead of the Federal Reserve’s monetary policy decision later this week.
European indices were trading weak, while Asian indices closed on mixed note as investors assessed trade developments between the U.S. and countries in the region.
Also Read: Coal India Q4 Preview: Earnings likely to decline on lower volumes, weaker realization
In stock-specific action, Cipla shares were down over 2 percent after US President Donald Trump signed an Executive Order to promote domestic drug manufacturing facilities, CCL Products India shares jumped 15 percent as Q4 consolidated profit jumped 56%, DCM Shriram shares down 2 percent despite Q4 profit rising 51 percent, Bombay Dyeing shares plunged 6 percent after Q4 consolidated profit slipped 82% and Indian Hotels Company shares declined 6 percent despite Q4 profit jumped 25%.
60 stocks on the BSE tested 52-week high including, Chambal Fertilisers, CEAT, Mangalore Chemicals, Bharti Airtel, Anupam Rasayan, Godfrey Phillip among others. Click to View More
Outlook for May 7
Aditya Gaggar Director of Progressive Shares
The market witnessed a volatile session that began with a muted opening, followed by a sharp decline and range-bound movement throughout the day, ultimately closing at 24,379.60 with a loss of 81.55 points. Sector-wise, Auto was the sole performer, while the rest of them ended in red, with PSU Banks and Realty dragging the most.
Throughout the day, relentless selling was witnessed in the Broader markets, as both Midcap and Smallcap indices declined over 2%, underperforming the Benchmark Index.
With a bearish divergence in the RSI and the formation of a bearish engulfing pattern, a potential reversal is expected, with 24,500 acting as a key resistance level, while support is seen near the 24,250 mark.
Shrikant Chouhan, Head Equity Research, Kotak Securities
Today, the benchmark indices witnessed selling pressure at higher levels. The Nifty ends 82 points lower while the Sensex was down by 156 points. Among sectors, most of the leading sectoral indices registered intraday profit booking, but the PSU Banks index lost the most, shedding 5 percent. Technically, after a muted open, the market consistently faced selling pressure at higher levels. A bearish candle on daily charts and a lower top formation on intraday charts indicate further weakness from the current levels.
We are of the view that as long as the market is trading below 24500/81000, the weak sentiment is likely to continue. On the lower side, the market could retest the level of 24250/80300. Further downside may also continue, which could drag the index down to 24175/80000.
On the other side, a dismissal of 24500/81000 could push the market up to 24580-24625/81300-81400. The current market texture is non-directional; hence, levels-based trading would be the ideal strategy for day traders.
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