After a flat start, the index touched a fresh record high in the initial hours only but erased all the gains and witnessed extended selling as the day progressed.
But buying at lower levels helped to recover some of the intraday losses to close at 24,324.50, down 108.70 points or 0.44 percent.
Broader markets also recovered from the lower levels where Midcap more or less moved in tandem with the Frontline Index while Smallcaps underperformed," he added.
"On the daily chart, the Index has made a Bearish Engulfing candlestick pattern at the record levels which indicates a potential reversal of the trend.
The Bank Nifty index opened lower at 52,528.80, which was the day’s high but selling pressure dragged it to 52,075.40.
Market Today
The Nifty50 index failed to hold a record high and ended 0.5 percent lower in the volatile session on July 10 amid selling seen in the auto, bank, IT, and metals names.
After a flat start, the index touched a fresh record high in the initial hours only but erased all the gains and witnessed extended selling as the day progressed. But buying at lower levels helped to recover some of the intraday losses to close at 24,324.50, down 108.70 points or 0.44 percent.
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Among sectors, auto, PSU Bank, IT, media and metal were down 1-2 percent, while FMCG, energy, and pharma ended in the green.
The Nifty Midcap index also hit a fresh high of 57,373.30. However, it tested the day's low of 55,727.80 but managed to recover nearly 1,200 points to end at 56,921.15, down 0.27 percent.
"In the opening trade, a steep fall was observed in the Mid and Smallcap segments putting pressure on the Index to trade lower with a loss of over 200 points. As the day progressed, the markets gradually started to recuperate their losses and finally settled the trade at 24,324.45 with a loss of 108.75 points," said Aditya Gaggar Director of Progressive Shares.
"On a sectoral front, Pharma was the top gainer followed by FMCG; and on the flip side, Auto was the major laggard by ending the day with a loss of 2.02%. The Media and Metal sectors underperformed as well. Broader markets also recovered from the lower levels where Midcap more or less moved in tandem with the Frontline Index while Smallcaps underperformed," he added.
"On the daily chart, the Index has made a Bearish Engulfing candlestick pattern at the record levels which indicates a potential reversal of the trend. A convincing move below 24,200 will confirm a short-term trend reversal till then uptrend will remain intact. On the other hand, a level of 24,460 will be considered an immediate hurdle," Gagger said.
The Bank Nifty index opened lower at 52,528.80, which was the day’s high but selling pressure dragged it to 52,075.40. However, some recovery helped to close 0.7 percent lower at 52,189.30.
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"The Bank Nifty index continued to witness selling pressure from higher levels and was unable to surpass the 52,500 mark, where call writers are active. The index is trading near a crucial support zone of 52,000-51,800. If it manages to hold this level, it can witness a pullback rally towards 52,500. A sustained move above 52,500 will open up gates for 53,000, but if it fails to hold the support of 51,800, it can decline further towards the 51,300-51,000 zone," Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
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