Bears on prowl: Sensex, Nifty fail to hold gains; here's what analysts say 

The benchmark indices managed to close higher for the seventh straight session amid high volatility on Tuesday. Sensex fell 726 points from the day's high of 78,741 and Nifty shed 201 points from the day's high of 23,869 at the time of closing. 

Sensex closed 33 pts higher at 78,017 and Nifty rose 10 points to 23,668.65 on Tuesday. Investor wealth stood at Rs 414.94 lakh crore on BSE today. 

The market saw profit-booking today as investors were concerned over global trade tariffs. US President Donald Trump has indicated that long-anticipated tariffs on automobile imports are likely to be announced in the coming days. 

Here's a look at what analysts said on the outlook post today's market move.

Ajit Mishra – SVP, Research, Religare Broking said, "A minor pullback after a strong rally is natural, and Nifty is expected to consolidate after testing its previous swing high around the 23,800 mark. On the downside, the index is likely to find support first around the key moving averages (100 DEMA & 200 DEMA) at 23,400 and next near 23,100. Traders should maintain a 'buy on dips' strategy with a focus on selective stock picking. We continue to favour the banking and financial sector while advising a selective approach in other segments."

Devarsh Vakil, Head of Prime Research, HDFC Securities said, "Following a 1,900-point recovery from recent swing low of 21,964, Nifty appears to have entered a consolidation phase. While the overall bullish trend persists, support is anticipated at 23,400. Short-term resistance is pegged at 23,869, with further resistance at 24,125."

Shrikant Chouhan, Head Equity Research, Kotak Securities said, "After a promising uptrend rally, the market is currently experiencing some profit booking at higher levels. However, the short-term texture of the market remains positive. For day traders, 23,600/77700 would be the key support zone. Above this level, the market could retest the range of 23,850/78300 to 23,900/78500. On the flip side, a dismissal of 23,600/77700 could alter market sentiment. Below this level, the market could slip to 23,500 to 23,450/77300-77200."

Rupak De, Senior Technical Analyst at LKP Securities said, "Nifty faced resistance at the previous swing high, leading to a volatile session. On the downside, support is observed around 23,300, which is a congestion level, with the 100-EMA also placed near this level. As long as the Nifty remains above 23,300, we anticipate a consolidation phase within a broader range of 23,300 to 23,800. Immediate support is placed at 23,600, and a decisive drop below this level could drive the index toward 23,300. On the upside, resistance is at 23,800, and a breakout above this level may resume the rally."

Meanwhile, BSE midcap index slipped 478 pts to 41,904 and BSE small cap stock index tanked 781 pts to 47,070 level. 

BSE consumer durables index slipped 1047 pts to 54,487 and BSE capital goods index fell 638 pts to 62,468. Metal and auto indices also slipped 416 pts and 478 points to drag the broader market lower on BSE. 

However, BSE IT index gained 427 points to 37,040.  

As many as 71 stocks hit their 52-week highs today. On the other hand, 146 shares fell to their 52-week lows on BSE. 

Out of 4,177 shares traded, 1,085 stocks were in the green on BSE. Around 2,983 stocks were in the red and 109 stocks remained unchanged.

Around 7 stocks hit their lower circuits. On the other hand, 10 shares hit their upper circuit limits amid highly volatile sentiment on BSE and NSE.

Previous session 

Sensex rose 1,079 points to close at 77,984, while the Nifty advanced 308 points to settle at 23,658 on Monday.