Smallcap index outperforms; Nifty Auto and realty shine

Market Update at 11:10 AM: The Indian benchmark indices were seen trading in negative terrain on Tuesday with Nifty and Sensex hovering around the 17,900 & 60,000 mark, respectively. 

Among the sectoral indices, Nifty Auto and Nifty Realty is seen leading from the front while on the other hand, Nifty IT & Nifty Metal were the top losers.   

A divergent trend was seen in the broader markets as Nifty Midcap 100 dipped 0.08 per cent while Nifty Smallcap 100 added 0.18 per cent and also, hit a fresh high!  

Nifty hit a fresh all-time high of 18,041.95 on Monday; however, in the latter part of the trading session, it pared its gains but still managed to settle with gains of 0.28 per cent and recorded its highest single-day closing ever.   

The price action of the day formed a bullish candle with a long upper shadow, which indicates that profit booking emerged from the high of the days in the latter part of the day.    

Nifty slipped almost 95 points from the day’s high in the last leg of the trade, indicating that the market participants preferred taking profit off the tables on a historic day. However, the market breadth stayed buoyant as the broader markets outperformed the frontline indices and buying interest was seen across the sectors barring Nifty IT, which ended in the red.   

Going ahead, the level of 17,800 is a crucial support for the index and on the upside, the levels of 18,050 & 18,115 are likely to act as resistance levels.   

As long as the index trades above 17,800, be with a bullish bias while a close below the level of 17,800 could have negative implications and in that case, the index may extend its correction towards the levels of 17,680.