The markets ended weak after a choppy session with the benchmark index sliding 73 points to 16,275 by close. The Sensex touched a high of 16,506 in intra-day deals. In broader markets, the Nifty lost 15 points to end the day at 4,859 levels.
“Technically, Nifty future has an immediate resistance at 4,920. It must sustain decisively above 5,052 and hold on to the 4,860 support to signal strength. Its immediate support is around 4,860 and may tumble to 4,810 – 4,800 once this support is broken,” said a technical analyst with Religare Securities.
In other Asian markets, Nikkei gained 112 points to end the morning session at 13,802. The broader Topix index gained 1% or 13 points to 1,357.
Back home, leading the pack of losers among the BSE 30 scrips was State Bank of India that hiked its deposit rates on 26 May. The counter lost 4.2% by close. Analysts expect the operating margins to remain under pressure in the short-term due to deposit rate revision.
Reliance Industries, ONGC, Larsen & Toubro, HDFC, DLF Limited, HDFC Bank and Tata Steel were some of the other key losers.
Banking scrips continued to reel under selling pressure. The banking index, BANKEX, shed 2.3% and was the worst hit among sectoral indices.
Oriental Bank of Commerce (down 5.7%), Bank of India (down 4.9%), Bank of Baroda (down 4.8%), Federal Bank (down 3.6%) ended in negative turf besides ICICI Bank and HDFC Bank.