Benchmark equity indices closed in the red for the second day in a row today (June 1). Among sectors, pharmaceuticals, power and real estate were the biggest losers, while buying was seen in financials and capital goods names.
The benchmark Sensex slipped 185.24 points or 0.33% to 55381.17. The wider Nifty was down 61.70 points or 0.37% at 16522.80. About 1800 stocks were up, 1450 stocks were down and 132 stocks were unchanged.
The market struggles to find positive triggers
The strong uptrend seen in recent sessions is slowly fading as the market struggles to find genuine positive triggers, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. further rate hikes and continued FII selling will keep the upside capped and we will continue to see bouts of volatility.
Technically, once again the Nifty has found resistance near 16550. The index has now formed a lower top formation on the intraday charts and a bearish candle on the daily charts, indicating a strong possibility of further weakness through compared to current levels. For traders, 16,450 would act as a strong support level, while there is a strong possibility of a further pullback rally if the index manages to trade above the same level. Above that, it could touch the 16,650-16,700 level. Below 16,450, the uptrend would be vulnerable and the chances of reaching 16,350-16,325 remain high, Chouhan said.
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