Market wrap: Infosys, HCL Tech, Bajaj Finance, BSE top gainers and losers on Nifty and Sensex on Wednesday

Indian equity benchmarks extended their losing streak to a second consecutive session, with selling pressure broadening beyond frontline stocks. The Nifty 50 declined 78 points, or 0.34%, to settle at 22,811, while the BSE Sensex shed 143 points, or 0.19%, to close at 73,710.The broader markets bore the brunt of the sell-off, with the Nifty Smallcap 100 plunging 2.37% and the Nifty Midcap 100 falling 1.58%, significantly underperforming the benchmark indices.Sectoral performance remained mixed, with information technology emerging as the sole major bright spot, gaining 2.88%.

Chemical stocks led losses, while banking shares remained under pressure following disappointing results from private-sector lenders earlier in the week. Market breadth on the NSE remained negative, with 2,988 stocks advancing against 608 declining, while 102 stocks were unchanged, out of a total of 3,698 stocks traded.2% Fibonacci retracement level during the ongoing mean-reversion rally. Monday’s developments and Wednesday’s price action indicate weakening momentum, while the potential hidden bearish divergence suggests a possible continuation of the prevailing downtrend, according to Vatsal Bhuva, Technical Analyst at LKP Securities."A cautious stance is advisable, with 22,650–22,700 acting as a crucial support zone around the 200-WMA.

If the index breaks below this zone, accumulated positions from the relief rally should be reviewed or reduced. Immediate resistance is placed at 23,000," said Bhuva.Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication.

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