The stock market closed on a negative note on Tuesday, with high volatility spurred by profit booking. The BSE Sensex dropped by 155.77 points, settling at 80,641.07, while the NSE Nifty50 fell by 81.55 points to end the session at 24,379.60.
The broader market indices also followed the downward trend, experiencing significant selling pressure. The sectoral performance was mostly weak, with the Auto index being the only sector that managed to gain. Conversely, PSU Banks and Realty stocks were hit hard by the selling pressure.
Among the top gainers on the Nifty50 were Hero MotoCorp, Bharti Airtel, HUL, Tata Steel, and M&M, while the top losers included Adani Enterprises, Jio Financials, Eternal, Trent, and SBI Life.
Aditya Gaggar, Director of Progressive Shares, described the session as volatile, noting that the market began with a muted opening, followed by a sharp decline and range-bound movement throughout the day. He pointed out that PSU Banks and Realty sectors were among the hardest hit, contributing to the broader market's negative performance.
In the broader market, both the Midcap and Smallcap indices underperformed, dropping by over 2%, signaling weaker performance compared to the benchmark index. Gaggar also indicated that a potential reversal could be expected, with the 24,500 mark acting as key resistance, and 24,250 providing support. The formation of a bearish engulfing pattern and a bearish divergence in the RSI suggest that the market may face challenges ahead.
