Benchmark indices tumbled for the fourth straight session on Monday, in line with weak global equities amid foreign fund outflows. Sensex tanked 953.70 points or 1.64 per cent to end at 57,145.22. Nifty fell 311.05 points or 1.80 per cent to close at 17,016.30.
Mid-cap and small-cap indices on BSE fell 718 points and 959 points, respectively. Banking, auto and metal shares were the top sectoral losers with their BSE indices falling 1,037 points, 1,157 points, and 841 points, respectively.
Market breadth was negative with 611 stocks ending higher against 2,980 stocks falling on BSE, while 116 shares were unchanged.
Here's a look at what analysts said about the direction the market is likely to take today.
Rupak De, Senior Technical Analyst at LKP Securities
"The momentum indicator is in bearish crossover and falling. The trend for the short-term looks negative; however, further selling pressure may be seen only below 17,950, where the 200 DMA is currently placed. On the higher end, immediate resistance is visible at 17,300-17,350."
Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities
"The street suspects that the Fed moving so aggressively on rate hikes could cause a recession. The other biggest headwind which stock markets world over facing is inflation. In this backdrop, investors await the RBI MPC's move on rate-hike decision this Friday, which would determine the trend in the medium term. Technically speaking, the biggest support for Nifty to watch will be 16,907 and if the index holds this level, there is a bright chance that Nifty could bounce to 17,451 and then to 17,727 mark.”
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
"The short-term trend of Nifty is sharply down, and the weakness is expected to continue for the next 1-2 sessions. The lower support area of 16,800 is expected to offer a base for the market in the short term."
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