Stock Market

Late sell-off: Sensex falls for 3rd day, Nifty manages to hold 8700


Chillicious Bureau

The market closed lower for third consecutive session Tuesday due to late sell-off after correction in global peers. Benchmark indices started off day on a positive note due to short covering but the fall in European stocks drove the market lower in last hour of trade.

The 30-share BSE Sensex was down 70.58 points at 28223.70. The 50-share NSE Nifty breached 8700 level intraday but managed to hold that level at close, down 16.65 points at 8706.40.

The broader markets bucked the trend as the BSE Midcap and Smallcap indices closed higher with moderate gains despite weak breadth.

The rangebound trade is likely to continue especially ahead expiry of September futures & options contracts on Thursday and RBI monetary policy in next week.

“With just a day ahead of F&O expiry, rollovers have remained below average, suggesting that risk appetite is lower, especially with RBI rate decision scheduled for next week,” Anand James of Geojit BNP Paribas Financial Services said.

Mustafa Nadeem of Epic Research said as per open interest data, shift of range from 9000-8700 to 8800 to 8600 on the Nifty indicated a bearish undertone in coming sessions. A sell on rise strategy may augur well for traders and investors, he feels.

On the global front, European stocks erased early gains as weak sentiment towards the banking sector saw Deutsche Bank shares hit a fresh record low. France’s CAC, Germany’s DAX and Britain’s FTSE were down 0.3-0.8 percent at the time of writing this article. However, Asia mostly closed higher, following the conclusion of the first US presidential debate. Japan’s Nikkei, China’s Shanghai and Hong Kong’s Hang Seng gained 0.6-1 percent.

More to come….