Market Watch: Nifty below crucial levels, support now at 21,500

Sentiments in the markets have turned bearish as Nifty broke the crucial level of 21,700.

The US markets ended largely mixed overnight amid lack of any fresh triggers. Back home, both Sensex and Nifty ended the session with sharp cuts amid across the board selling in the final hour of trade. The Sensex ended lower by 523 points at 71,072, while the Nifty ended 166 points lower at 21,616.05.

“Global cues are muted as most of the Asian markets are closed for this week on account of Lunar New Year holidays, which kept global investors on side-line. Overall we expect the market to consolidate with negative bias in near term.” said Siddhartha Khemka of Motilal Oswal Financial Services.

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On the technical front, Sheersham Gupta, Technical Analyst at Rupeezy, said “Sentiments in the markets have turned bearish as Nifty broke the crucial level of 21,700. On a 30-minute timeframe, Nifty has been forming lower highs and lower lows for the past 10 days. Now the immediate support for Nifty lies at 21,500, a slide below which can take Nifty to 21,250.”

Foreign Institutional Investors on Tuesday added shares worth Rs 126.60 crore in the cash markets. On the other hand, flows from DIIs remained positive too as they added shares worth Rs 1,711 crore, provisional data from exchanges showed.

Top stocks to watch today are Hindalco, Coal India, JSW Energy, Paytm, HEG.