The Indian equity benchmarks resumed decline after a day’s pause in the previous session dragged by losses in heavyweights like Infosys, Reliance Industries, ITC, HDFC, Larsen & Toubro, Tata Consultancy Services and Maruti Suzuki. For most part of the day benchmarks traded firmly higher but selling pressure in the last hour of trade around resistance levels of 17,600 on Nifty led to sharp correction in the markets, analysts said. The Sensex fell as much as 825 points from the day’s highest level and Nifty touched an intraday low of 17,354.
The Sensex fell 323 points to close at 58,341 and Nifty 50 index declined 88 points to settle at 17,415.
“Our research suggests that sustaining above 17,400 will be an important level for the Nifty to stay positive in the short term. If the market is able to sustain the level of 17,400, It can witness a positive momentum towards levels of 18,000,” said Vijay Dhanotiya, lead technical research analyst at CapitalVia Global Research.