The market broke the four-day gaining momentum as bears took control on D-Street with Nifty failing to hold the 11,900.
At close, the BSE Sensex shed 148.82 points to end at 40,558.49 and the Nifty50 closed with a loss of 41.20 points at 11896.50.
“We closed within the current range of the Nifty i.e. 11650-12050. The markets, marked by low volumes, moved in a tight range of about 100 points. It is just a matter of a few days when the index will either get past 12,050 to achieve 12,300 or break 11,650 and fall to 11,450,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Sectorally, the action was seen in power, oil & gas and metal space while profit-taking was seen in pharma, IT and bank stocks.
The broader markets outperformed benchmark indices with S&P BSE midcap index rising 0.54 percent while the smallcap index closed 0.85 percent higher.
The top losers on the Nifty were IndusInd Bank, Hero MotoCorp, Infosys, ICICI Bank and Cipla. The gainers were Bharti Airtel, Tata Motors, IOC, NTPC and Bajaj Finance.
Stocks & sectors
Sectorally, the action was seen in the BSE Power, which was up 2 percent. The BSE Oil & Gas index added over 1 percent and the Capital Goods index jumped 1.5 percent.
Selling pressure was seen in the BSE IT index, which slipped 0.7 percent. The Healthcare index was down 0.40 percent and the auto index slipped 0.22 percent.
A volume spike of more than 100 percent was seen in SAIL, Jindal Steel, Tata Motors and Petronet LNG.
Long build-up was seen in stocks like Power Grid, SAIL and JSW Steel. Short build-up was seen in stocks like Aurobindo Pharma, Bajaj Finserv and Jindal Steel.
ACC, Ambuja Cements, Tata Elxsi and JSW Steel were among more than 100 stocks on the BSE hit a fresh 52-week high.
The Nifty formed Doji candle and an inside Bar on daily scale indicating tug of war between bulls and bears to get a decisive range breakout from 11800-12000 zones.
Overall, price and data setup suggests a bounce but multiple hurdle and supply pressure at higher zones could restrict its upside momentum with higher volatility.
“Now it has to hold above 11800-11820 zones to witness an up move towards 12000 then 12100 zones while on the downside key support exists at 11777-11750 zones,” Chandan Taparia, Motilal Oswal Financial Services told Moneycontrol.
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