Here are five things to know about Tuesday's trading session:
In the Nifty50 the losses were led by Bharti Airtel (down 3.16 per cent), Indiabulls Housing Finance (down 3.11 per cent), Zee Entertainment Enterprises Limited (down 2.30 per cent), Coal India (down 2.03 per cent), and YES Bank (down 1.91 per cent).
In stock-specific action, Biocon hit a 52-week high after its Pegfilgrastim, a cancer drug developed by the company with Mylan received US Food and Drug Administration (USFDA) approval. Maruti Suzuki zoomed nearly 20 per cent after total production went up 22 per cent to 1.84 lakh units in May.
"The central bank of India is almost set to change its attitude from neutral to aggressive on financial cost. The monetary policy committee is expected to tighten the rates and make an upward revision in terms of inflation forecast...We may see a further fall (of Nifty50) towards 10,400. Intermediate resistance placed near 10,700," said Dyaneshwar Padwal – AVP – Technical Analysis, KIFS Trade Capital.
"Nifty finds strong support at 10,640 level, break will take it to 10,600 level. On the upper side, Nifty will face hurdle at 10,725 level, cross over will take it to 10,790 level," stated Equity 99 in a note.
The Nikkei/IHS Markit Services Purchasing Managers' Index fell to 49.6 in May from April's 51.4, sinking below the 50-mark that separates growth from contraction. The activity in the service industry shrank in May for the first time in three months as new orders stagnated, the survey showed, according to a Reuters report.
(With Agency Inputs)