 "Nifty end below 8,650, metal stocks shine; FOMC outcome eyed")
Markets closed the session on a lower note amid volatile trading session weighed down by defensive sectors like IT, FMCG and pharma. However, the downside was limited due to buying among metal shares and favourable core sector growth in October.
Further, investors have turned cautious ahead of Federal Open Market Committee (FOMC)'s two-day meet on monetary policy which will conclude tomorrow.
Besides, manufacturing sector growth in India hit a 22-month high in October, driven by a sharp and accelerated increase in new orders, purchasing activity and output, a monthly survey showed on Tuesday.
The benchmark S&P Sensex closed at 27,877 down 54 points or 0.2% whereas the Nifty50 index ended flat at 8,626 mark. Meanwhile, the S&P BSE Midcap and Smallcap indices fell 0.2% each.
"Nifty50 has found a strong support at 8,500 but the breaching of which will start a long spell of sideways movement with downward bias. However, market is also likely to face strong resistance at 8,800 and 8,900 on the upper side. The long term strength of the market is intact. Buy on dips and fresh longs can be entered at current levels with stop below 8,500 in the Nifty50", said Jimeet Modi, CEO, SAMCO Securities.
Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments says, "Nifty forms dragonfly doji on last two consecutive days which indicates selling are absorbed and Nifty is gearing for a new bull run. On chart 8,550 is placed as a very strong support and bulls are protecting it whenever market slips there".
In the overseas markets, Asian stocks bounced on Tuesday, erasing early losses, helped by stronger-than-expected factory activity in China but investors stayed largely to the sidelines as the U.S. presidential election campaign entered its final week.
Chinese stocks rose after the release of encouraging purchasing managers index data from China.
Other Asian stocks ended mixed. China's official manufacturing PMI rose to 51.2 in October from 50.4 in September, adding to signs that the world's second-largest economy is stabilizing.
Back home, shares of nine metal and mining companies surged between 1%-7% after the release of encouraging purchasing managers index data from China, the world's largest consumer of steel, copper and aluminum.
Hindustan Zinc, Vedanta, Hindalco Industries, Tata Steel, Hindustan Copper, NMDC, SAIL, NALCO, JSPL and Bhushan Steel gained between 1%-7%.
On the losing side, Axis Bank, Sun Pharma, TCS, Infosys and Cipla were down 1%-2.5%.
Eicher Motors increased over 5% after total motorcycle sales rose 33% to 59,127 units in October 2016 over October 2015.
Country's largest car maker Maruti Suzuki today reported a low single digit domestic growth of 2.2 per cent in October, the last month of festive season. The company said production in October was impacted by fewer production days due to holidays. The stock slipped marginally by 0.4%.
Cadila Healthcare rose over 1% after the company said that new data of Saroglitazar will be presented at The Liver Meeting being held at Boston from 11 to 15 November 2016.
BGR Energy Systems rose moved higher by over 5% after the company said it won a Rs 2,600 crore contract from TANGEDCO for North Chennai thermal power project.
