• Larsen and Tubro, ICICI Bank and Divis Labs are the top gainers.
• Coal India, Adani Ports and BPCL are the main laggards. All Adani Group stocks are in the red.
• The Sensex jumped 412.02 points to 67,539.10 in early trade while the Nifty climbed 114 points to 20,110.35.

Benchmark Indian indices, the Sensex and the Nifty, opened at a record high on Tuesday morning but slipped sharply after that. The market has been on a bull run in the recent past and recorded a seven day gaining streak on its last closing.

The Sensex jumped 412.02 points to 67,539.10 in early trade while the Nifty climbed 114 points to 20,110.35. However, at the time of publishing, the Nifty is trading at 19,924, down 71 points from Monday’s close while the Sensex has fallen 172 points and is trading at 66,954.

The midcap stocks have also seen sharp correction and the Nifty Midcap index is down over 2% from its day’s high.

“Optimism regarding India’s growth prospects in a low-growth world and a fast decelerating China has triggered this rally enabling the Nifty to cross the psychological 20000 mark,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“In the near-term, the market is likely to consolidate around the present levels.”

Larsen and Tubro, ICICI Bank and Divis Labs are the top gainers while Coal India, Adani Ports and BPCL are the main laggards. In fact, all Adani Group stocks are in the red.

Technically, the Nifty has formed a bullish candle on the daily charts and is consistently forming a higher high and higher low series formations on the intraday charts, which is largely positive, points out Shrikant Chouhan, Head of Research (Retail), Kotak Securities

“For trend-following traders, 19900-19850 would act as a key support level. Above that level, the index could move up to 20100-20175 in the near term and 20400-20500 in the medium term. On the flip side, traders may prefer to exit long positions if the index falls below 19800, and below the same, one could expect a quick intraday correction up to 19700-19650. If Nifty corrects till 19900 -19850 level then the strategy should be to buy Nifty. For this keep the stop loss at 19800. Between 20100 and 20400 levels, it is advisable to take partial profits on investments or reduce excessive investments in equities,” he elaborated.

The benchmark indices have added over 3% each, respectively over the past week, after India’s economy grew firm in the April-June quarter.

The Indian economy has witnessed a firm GDP growth rate of 7.8% in the first quarter (April-June) of 2023-24 is likely to have improved investors’ sentiment lately. With a GDP growth of 7.8%, it continues to be the fastest-growing major economy.

For fresh cues, investors now await India’s retail inflation data for August, due at 5.30 pm on Tuesday evening.