The Indian market for the second consecutive day reported weakness, as Sensex slipped over 250 points and Nifty ended below 17850-level. The decline was mainly led by banking stocks, especially private lenders along with auto, pharma, financials, and fast-moving consumer good (FMCG) stocks.

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Amid weak global cues, the Indian markets are entering into a corrective phase, according to estimates by most analysts Zee Business online team spoke to. The market is likely to witness some more range-bound trading, they said.

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“The indices took a downturn as major global indices traded weak ahead of the Fed policy announcement”, Geojit Financial Services, Head of Research Vinod Nair said. “The Federal Reserve is widely expected to announce the tapering of its asset purchase program in the near-term while any hint on interest rate reversal is keeping investors on the edge.”

“Nifty has entered a corrective phase and is expected to remain under pressure for the short term. Resistance is expected around 18000-18100 levels while we see value around the 17000-17200 mark,” Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities noted.

Another analyst Rohit Singre, who is Senior Technical Analyst at LKP Securities said, “Index again showed profit booking and closed a day at 17829 with loss of nearly half percent and formed a bearish candle on the daily chart for the second consecutive candle.”

“Index is unable to cross its strong zone of 18000 mark in last two sessions until we don’t cross above said levels we may not see good buying comes in & profit booking can be witnessed towards immediate support zone of 17750-17700 zone,” he added.

“After opening on a positive note markets showed sideways movement, trade in red after major global indices traded red ahead of the FOMC meeting,” Mohit Nigam, Head - PMS, Hem Securities. 

“Tapering of asset purchase program is expected from Fed meeting and any indications of faster rate of tapering may be negative for global Indices. On the technical front 17,700 and 18,000 are near term support and resistance in Nifty 50 respectively”, Nigam added.