Sensex tumbles 2,100 pts, Nifty down 600 pts in three sessions; more downside likely?

Indian equity market ended lower for the third straight session today as profit-booking from record highs and concerns over Iran-Israel tensions affected market sentiment. While Sensex has lost 2,095 points, Nifty is down 606 points since February 12. In Tuesday’s session, Sensex closed 456 points lower at 72,943 and Nifty lost 124 points to 22,147.  Market cap of BSE-listed firms fell to Rs 394.31 lakh crore. India VIX, the volatility index, was up 1.12% to 12.61, signaling a rise in volatility in the stock market.

Infosys, IndusInd Bank, Wipro, Bajaj Finserv, HCL Tech and Tech Mahindra were the top Sensex losers, falling up to 3.65 per cent. Of 30 Sensex stocks, 23 ended in the red.

Shares of Titan, HUL, HDFC Bank and Maruti were the Sensex gainers, rising up to 1.26%.

IT, banking and capital goods shares were the top losers today with their BSE indices tumbling 816 pts, 270 pts and 158 pts, respectively.

On the other hand, losses were capped by BSE consumer durables and oil and gas indices, which ended 323 pts and 197 pts higher, respectively.

Market breadth was negative with 2251 stocks rising against 1567 stocks falling on BSE. 115 shares were unchanged.

Aditya Gaggar, Director of Progressive Shares said, "A quick recovery from the lower levels helped the Mid and Smallcaps to outperform the Nifty50. A reversal can be expected as the index has formed a Spinning Top candlestick pattern at its long-term trendline support which is coupled with a 50DMA. The psychological level of 22,000 is the immediate support while the upside seems to be capped at 22,400."

Rupak De, Senior Technical Analyst, LKP Securities said, "Technically, the trend has weakened as the index fell below the 21EMA. However, following the sharp decline, the index may find short-term support within the 21930-22030 bands, where previous congestion occurred. Conversely, failure to maintain support at 21930 could exacerbate panic in the market. On the higher end, resistance for the short term is positioned at 22400."

Previous session

Benchmark indices closed lower on Monday amid rising tensions between Iran and Israel. Sensex ended 845 points lower at 73,399 and Nifty lost 247 points to end at 22,272 today. Market cap of BSE-listed firms fell to Rs 394.73 lakh crore.