Indian Benchmark indices witnessed selling after hitting fresh high. Strong selling was seen in Metal, Realty and FMCG stocks while buying is witnessed in IT stocks.
The benchmark indices closed lower on Tuesday (October 19). The Sensex was down 49.54 points or 0.08 percent at 61,716.05. The broader Nifty was down 58.20 points or 0.31 percent at 18418.80. About 959 shares have advanced, 2321 shares declined, and 122 shares are unchanged.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "After making a new life time high of 18,604 , the Nifty saw some profit booking and closed at 18422 , negative by 55 points since yesterdays close. On daily charts Nifty has made a bearish pattern and charts are suggesting that the correction in Nifty may continue in the next few trading sessions. Nifty has support at 18350 and 18,225 levels. Nifty will face resistance in 18480 to 18,530 range. Traders are suggested book profits and keep strict stoploss in the current markets."
Mohit Nigam, Head-PMS, Hem Securities said, "Today most of the mid-cap IT firms showed positive momentum after strong numbers posted by Route Mobile. IEX surged over 19 percent after management announced to consider a bonus issue. Borosil Renewables continued its upward trajectory due to traction seen in the renewable industry. IRCTC was down 15 percent as there is a possibility of shares entering F&O ban today. We can see some movement in the banking sector as Moody's revised the Indian Banking system’s outlook to stable from positive.
"On the technical front, benchmark indices witnessed sell off after seven consecutive positive sessions. We believe the profit booking which was witnessed today is healthy for the market and any significant dip is a good opportunity to accumulate quality stocks. Immediate support for Nifty 50 is 18,300," Nigam added.