Benchmark indices retreated after hitting fresh highs on Monday amid profit booking.
The Sensex hit a fresh high and crossed 76,000 before ending at 75,391, down 0.03 per cent, amid weakness in metal and auto shares. The Nifty was down 0.11 per cent to 22932. Technically, the index found trendline resistance at 23,110 and witnessed profit booking.
Cash market volumes on the NSE were flat compared to the previous day. The midcap index closed 0.63 per cent higher even as the advance-decline ratio remained negative at 0.62:1. India VIX, a fear gauge, rose 6.8 per cent to 23.19.
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Vinod Nair, Head of Research, Geojit Financial Services, said: “The bulls are facing stiff resistance at 23,000 levels as investors start booking profit at higher levels to avoid any knee jerk reaction in the market ahead of the election result. Better earnings growth, the expectation of a revival in private capex, and a moderation in FPI selling are the key positive triggers in the market.”
FPIs sold shares worth Rs 541 crore, while domestic institutions bought shares worth ₹923 crore, provisional data showed.
GDP awaited
The release of India’s Q4 GDP and US inflation figures this week will influence market direction in the near term.
“While we expect further upsides and new life highs in the run up to the election results, we remain open to volatile movements. Crucial supports to watch out for more weakness are at 22908-22871,” said Subash Gangadharan, Senior Technical/Derivative Analyst at HDFC Securities.
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Oil prices stabilised in Asian trading on Monday as markets awaited the OPEC+ meeting on June 2, where producers are expected to discuss extending voluntary output cuts for the remainder of the year.
European stocks were largely flat in a light trading day with markets in the UK and US closed for holiday on May 27 and investors taking a cautious stance ahead of key inflation data from the United States and Europe later this week. Asian markets rose Monday, led by China and Hong Kong, with Jakarta Composite the lone outlier.