Bulls vs Bears: Here's what to expect on Dalal Street today

Benchmark indices closed lower in volatile trade on Monday amid positive global cues. Sensex declined 93.91 points to close at 55,675. During the day, the 30-stock index tanked 473.49 points to 55,295.74. Nifty fell 14.75 points to finish at 16,569.55.

Asian Paints, UltraTech Cement, Bajaj Finserv, Dr Reddy's, Nestle, Larsen & Toubro, HUL and Axis Bank were the top Sensex losers, falling up to 2.36 per cent. Tata Steel, IndusInd Bank, M&M and Kotak Mahindra Bank were among the major gainers, rising up to 0.99 per cent.

Market cap of BSE-listed firms fell to Rs 256.41 lakh crore in the previous session against Rs Rs 257 lakh crore on Friday.

BSE mid cap and small cap indices fell 35 points and lost 143 points, respectively.

Here's a look at what experts said about the direction the market is likely to take today.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities said, "Nifty has sustained above the cluster supports of around 16400-16450 levels as per change in polarity and daily 10 and 20 period EMA. As long as the area of 16400 level is protected, there is a possibility of upside bounce in the market. We observe broader high low range movement around 16800-16450 levels in the last one week. Having sustained above the lower range of 16450 levels, there is a possibility of Nifty moving towards the upper range of 16800 levels in the short term."

Deepak Jasani, Head of Retail Research, HDFC Securities said, "Nifty has consolidated on Monday after falling from higher levels on Friday. Having taken support from 16443, Nifty rose and closed higher than the low, though minorly in the negative. We think Nifty could remain in the 16353-16696 band for the next few sessions."

Prashanth Tapse, Vice President (Research), Mehta Equities said," Technically speaking, after Monday’s consolidation, the downside risk on Nifty is seen at the 16,371. Alternatively, if Nifty’s make-or-break support at 16,371 holds then expect bulls to re-group with aggressive targets seen at 16897-17250 zone with interweek perspective.”

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said,“ Basically, the market has been exercising caution ahead of the credit policy announcement this week, and hence investors trimmed their position in rate-sensitive sectors such as realty. Technically, the Nifty found support near 16450 but failed to capitalise on it. The texture of the chart is indicating that a range bound activity is likely to continue in the near future. For day traders, 16500 would be the key support level to watch out, and above which the index could move up to 16650-16750. On the flip side, a fresh round of selling pressure is possible if the index trades below 16500. Any further decline could see the index retest the level of 16,400-16,350.”

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Also read: Sensex slips 94 pts, Nifty falls to 16,569 in volatile trade