The Nifty50 index shed 80.75 points or 0.73 per cent to settle at 11,049.65 today with 36 constituents ending in the red, while the Sensex fell 249.52 points or 0.69 per cent to stop at 36,033.73 today. The pause in the rally was because of global cues, as Asian and European markets too saw modest corrective moves.
A day after hitting fresh record highs, the domestic benchmark indices took a breather today, as Sensex and Nifty fell around 0.70 per cent, owing to sustained profit-booking across sectors, while caution prevailed ahead of the federal budget, due later this week. Asian stocks retreated from record highs after a selloff in Apple shares knocked Wall Street lower. Investors remained cautious awaiting the outcome of the US Federal Reserve's two-day policy review, which begins today.
The profit booking that got triggered at Monday's intraday high did not halt. Today, the opening level was the highest point of the day, which resulted in a 'Bearish Belt Hold' candle on Nifty's daily chart. This wiped out the gains of last three sessions, but the index is still holding above the psychologically important 11,000 mark. If the index fails to hold on to the 11,110 level in the short run, the bulls may give up more grounds to the bears. Now it has to cross and hold above 11,111 to extend its move towards 11,170 and then 11,250 levels, while on the downside, support exists at 10,990 and then 10,888 levels.