dalal street: Market Watch: Bearish chart pattern signals more weakness ahead | The Economic Times Podcast

Domestic benchmark indices saw a sharp fall on Monday amid a rising dollar and US bond yields ahead of Fed’s annual Jackson Hole symposium. At home, the expiry of monthly derivatives was also eyed by futures and options traders.

The indices were trading in the overbought zone, and analysts were expecting selling at highs. Besides, Asian markets were also largely mixed, offering little support to domestic stocks.

The 30-pack BSE Sensex tanked 872 points or 1.46 per cent, to end below the 59,000 level at 58,773.87. Nifty50, meanwhile, fell 267.8 points to end at 17,490.70.

ITC and Nestle were the only two shares from the 30-share pack to end above the flatline, whereas Tata Steel tumbled 4.5 per cent, Asian Paints fell 3.5 per cent and Wipro, Sun Pharma, L&T, and Bajaj Finance lost 3 per cent each. UltraTech, Bajaj Finserv, Kotak Mahindra Bank, Axis Bank, Tech Mahindra, ICICI Bank, and SBI also fell 2 per cent each.

Broader markets underperformed Sensex and Nifty and cracked 2 per cent each. All sectoral indices ended the session with cuts with Nifty Metal falling 3 per cent, Nifty Auto, Realty, PSU Bank and financial services slumped 2 per cent each.

The BSE-listed companies’ market capitalisation stood at Rs 273.99 lakh crore, down Rs 6.53 lakh crore in two sessions over Rs 280.52 lakh crore as of August 18.

Mr. Nagaraj Shetti of HDFC Securities said the short-term trend of Nifty continues to be down and the overall bearish chart pattern signals more weakness ahead.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye.