Indian markets ended negative in a lackluster trade on Monday led by selling pressure in IT stocks which fell up to 3% after Moody’s downgraded the US sovereign credit rating on Friday. The BSE Sensex fell 271.17 points or 0.33% to close at 82,059.42, the broader Nifty was down by 74.35 points or 0.3% to end the day at 24,945.45.
Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities said that in a volatile session today, the Nifty and Bank Nifty decoupled from each other. “Technically, the index appears to be in a consolidation phase, which may continue for the next few days. The Nifty closed below the 25,000 mark after two days of holding above it. The index may remain under pressure unless it reclaims the 25,000 level,” he said.
On the downside, the Nifty could drift toward the 24,800–24,750 zone, De said, adding that a deeper correction may be likely if it breaks below 24,750. Conversely, a move above 25,000 could trigger a rally toward the 25,250–25,350 range.
Here are 5 stock recommendations for Tuesday:
