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Bulls slowed down the pace to take a breather after clocking in fresh all time highs on June 1. Benchmark indices erased the intraday gains and ended flat amid high volatility.

The Nifty had opened at a record high level of 15,629 and climbed further to clock in fresh all time high levels of 15,660, however selling pressure at higher levels led the index to wipe most of the gains.

At close, the Sensex was down 2.5 points  at 51934, and the Nifty was down 8 points or 0.05% at 15574 dragged mainly by financials, metals and auto stocks today. Except for SBI, all Nifty Bank constituents ended lower, ICICI bank was the top loser. Maruti, Ashok Leyland, TVS slipped as may sales come below estimates. Steel shares fell on China’s easing of restrictions, Nifty metal was down 1%.

Broader markets, MidCap and SmallCap indices also closed lower in trade. Among sectors, except for IT, media and pharma, all other sectoral indices ended in the red.

A cut in GDP growth forecast by global agency Moody’s and a downtick in manufacturing activity (PMI data) kept market participants on the sidelines and led to profit-taking across the board.

Adani Ports, ONGC, Bajaj Finance, SBI and Bajaj Auto were among major gainers on the Nifty, while losers included JSW Steel, Tata Steel, UltraTech Cement, ICICI Bank and Grasim Industries.

Vinod Nair, Head of Research at Geojit Financial Services said, “Despite positive global cues and optimism from declining fresh Covid cases, domestic bourses erased its early gains and traded flat owing to weak economic data. While upcoming RBI policy and likely delay in the start of monsoon season bought cautiousness to the momentum.

Here’s what investors should do on Wednesday

Manish Shah, Founder, www.Niftytriggers.com

The overhang of RBI monetary policy and the usual uncertainty before a major announcement is palpable due to the listless movement in Nifty. At times a pattern of this type before a major announcement usually results in sideways action for a couple of days. Nifty could see a rangebound action over the next two days within 15,470-15,660. The underlying trend Nifty and Bank Nifty is bullish.

Any statement post the meeting which is interpreted as a positive development could be a trigger for a rally in Nifty towards 15,775-15,800 after the end of the policy meet. The underlying current in Nifty is bullish. In case of any short term drop in Nifty towards 15,450-15,500 should be considered as a buying opportunity.

Ajit Mishra, VP – Research, Religare Broking

Markets ended almost unchanged in a choppy session, taking a breather after the recent surge. After the initial uptick, the benchmark drifted lower and remained in a narrow range till the end. It’s a healthy pause and we may see further consolidation in the benchmark in the following session.

However, there’ll be no shortage of trading opportunities on the stock-specific front so traders should maintain their focus on identifying the sectors/stocks and accumulate them on dips. With the earnings season largely behind us, the markets would focus on global markets and upcoming monetary policy review meet for cues.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a fine up move in the last four sessions, Nifty shifted into a consolidation on Tuesday and closed the day with a minor negative note. Tuesday’s consolidation movement has not changed the positive sentiment created in the market. The next upside levels to be watched for Nifty at 15,800 levels, which could be reached in the next 3-4 sessions. At the same time, one needs to be cautious about long positions at the new highs. Immediate support is placed at 15,500 levels.