Can Nifty cross 26,100 as global markets drag sentiment?

Mumbai: Key Indian indices ended weak on Tuesday, snapping their six-day rally, as traders cut positions in the wake of weakness in global markets and after Nifty struggled to cross the 26,100 mark.

NSE's Nifty fell 103.4 points, or 0.4%, to close at 25,910.05. BSE's Sensex declined 277.93 points, or 0.3%, to end at 84,673.02.

"This is a breather that is in line with the correction seen in US markets overnight and Asian markets in the morning," said Sham Chandak, head of institutional equities at Elios Financial Services.


Elsewhere in Asia, Japan fell 3.2%, China declined 0.8%, Hong Kong fell 1.7%, South Korea declined 3.3% and Taiwan dropped 2.5%.

The pan-Europe index Stoxx 600 was down 1.4% at the time of going to print.

At home, the 26,100-level may be proving to be a near-term hurdle for the Nifty. "We witnessed the Nifty fail for the third time (on Tuesday) to hold above the 26,000 mark, and it once again struggled to break past 26,100," said Gaurav Sharma, head of research at Globe Capital Market. "Yet there were clear positives as the Bank Nifty made another record high, which is crucial because any fresh highs in the Nifty will be led by the banking pack, especially at a time when heavyweight sectors like IT and metals lack the momentum to drive the index higher."

On Tuesday, Nifty's India Volatility Index or VIX rose 2.6% to 12.1 levels, indicating some caution among traders.

Broader market indices remained weak as the Nifty Midcap 150 dropped 0.6% and the Nifty Small-cap 250 fell 1%. Out of the total 4,341 stocks traded on BSE, 1,401 advanced and 2,810 declined at close.

Sharma said any dips should be viewed as buying opportunities, with Nifty's immediate support placed at 25,800 and the next support level around 25,400.

Foreign portfolio investors net sold shares worth ₹729 crore. Domestic institutions were buyers worth ₹6,157 crore.