Closing bell: Nifty50 ends below 16,650 dragged by losses in Reliance, auto stocks

Ending a six-day gaining streak, Nifty50 settled 0.5 percent lower at 16,631 on Monday, and Sensex ended down 0.5 percent at 55,766.22.

“On the technical front, Nifty has formed a Doji kind of candlestick on the daily chart which suggests indecision between buyer & seller. Nifty has taken support from rising trend line as well as 100 DMA which suggest a northward journey in the counter,” said Palak Kothari, Senior Technical Analyst, Choice Broking.

She added, “The Nifty may find support around 16,500 levels while on the upside 16,800 may act as an immediate hurdle. On the other hand, Bank nifty has support at 36,000 levels while resistance at 37,300 levels”.

Overall, the index has formed a good base around 16,500 level, every dip can be used for buying opportunities in value stocks, according to Kothari.

Shares of index heavyweight Reliance Industries and automobile stocks contributed to today's fall in the key indices.

Meanwhile, here are some gainers in today's weak market:

Sentiment across Asian markets was weak. MSCI’s Asia Pacific ex-Japan was down 0.3 percent.

Investors were in a cautious mood ahead of the Federal Reserve's two-day policy meeting and what could be the latest central bank signal of an even faster pace of tightening just as signs of a global slowdown mount.

European key indices started the week on a negative note but recovered soon after.

Meanwhile, S&P futures were now trading 0.4 percent higher hinting at a positive start for Wall Street.