Domestic market remains range-bound
The domestic market experienced range-bound movement on Tuesday post hitting new record high the preceding day, influenced by cautious trend in global peers ahead of the US Fed Chair's congressional testimony and key US jobs data, said Vinod Nair, Head of Research at Geojit Financial Services.
Nifty 50 closed the day with a loss of 49 points, or 0.22 per cent, at 22,356.30, while the Sensex ended at 73,677.13, down 195 points, or 0.26 per cent.
The absence of significant stimulus measures from China further dampened sentiments. Mid and smallcap stocks continued to underperform due to their higher valuations, Nair said.
The IT sector sustained recent losses amid concerns over delays in rate cuts by the US Fed. However, PSU banks outperformed, while auto stocks gained momentum supported by healthy volume numbers and pick-up in rural demand, he said.
Rupak De, Senior Technical Analyst at LKP Securities, said the bulls and bears experienced another day of minor clashes without arriving at a definitive outcome.
The sentiment remains positive, with the index staying above the short-term moving average. The momentum indicator RSI is showing a bullish crossover. For a potential rally towards 22,600 and beyond, Nifty needs to decisively breach the 21,400 levels. On the downside, support is positioned at 22,200, De said.
