Vijay Dhanotia, Senior Research Analyst at CapitalVia Global Research explained, “If the market is unable to sustain the market level of 16,800, we will see a correction for the market to continue till the level of 16,400. Technical indicators are turning towards a volatility in the market. Point out and advise traders to refrain from creating fresh buying positions.”
Meanwhile, the three-day Monetary Policy Committee meeting of the Reserve Bank of India began on Monday. According to a Reuters poll of economists, the Reserve Bank of India (RBI) will keep rates in its December meeting and increase its reverse repo rate early next year and increase the repo rate in the next quarter.
The selling pressure was so intense that all the 15 sectoral indices compiled by the National Stock Exchange ended lower on the back of the Nifty Information Technology index’s fall of nearly 3 per cent. Nifty Oil & Gas, Healthcare, Pharma, Private Bank, Metal, Bank, Auto and FMCG indices also fell between 1-1.8 per cent.
Mid and small-cap stocks also faced selling pressure as Nifty Midcap 100 index fell 1.42 per cent and Nifty Smallcap 100 index fell 1.1 per cent.
IndusInd Bank stocks saw the biggest fall. Its stock fell by 3.7 percent to ₹ 916. Tata Consumer Products, Bajaj Finserv, Bharti Airtel, Tata Consultancy Services, HCL Technologies, Tech Mahindra, Tata Motors, Wipro, Divi’s Labs, Infosys and Grasim Industries also fell between 2-3.4%.
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