Mumbai, May 31 The two Indian stock markets - the BSE and the NSE - on Wednesday went on a downward trajectory after days of uptrend.
The Sensex of the BSE opened at lower note at 62,839.97 after closing at 62,969.12 on Tuesday. After touching a high of 62,876.77 points, it closed at 62,622.24 points, down by 346.89 points.
Similarly, the Nifty 50 of NSE opened at 18,594.20, after closing at 18,633.85 points on Tuesday. It touched a high of 18,603.90 and closed at 18,534.40 points.
According to Deepak Jasani, Head of Retail Research, HDFC Securities, the Nifty was pulled down by weak global cues. Volumes on the NSE were the highest since Nov 2020 due to the MSCI rebalancing trades.
Jasani said Asian markets fell and European shares hit an over two-month low on Wednesday as weak economic data from China fuelled concerns about a global slowdown and countered optimism from signs of easing inflation in some of the major euro zone economies.
Global markets were also nervous ahead of a vote by the US Congress on a deal to avert a government debt default.
The fact that the Nifty did not close at the intraday low was reassuring. Nifty could now remain in the 18,641-18,432 band for the near term, Jasani added.
"Currently, Nifty is witnessing selling pressure from higher levels. Once it sustained 18,650 levels, we can expect a rally till 18,800-18,880 levels. However, the Nifty formed bearish pattern in the daily chart would be short term concerning," said Om Mehra, Equity Research Analyst, Choice Broking.
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