Indian market started off on a weak note on Monday amid rise in geopolitical concerns. The S&P BSE Sensex and Nifty50 fell more than 2 per cent each in a kneejerk reaction.

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The S&P BSE Sensex plunged more than 1700 points, while the Nifty50 breached 16,900 on the downside in Monday's closing.
 

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US Fed Minutes:

Most Asian markets were trading weak ahead of the US Fed minutes to be released on Wednesday, 16 February.

The Street is also factoring in a big rate hike of about 50 bps in March.

“Markets have been in convulsions since an alarmingly high U.S. inflation reading sparked speculation the Federal Reserve might raise rates by a full 50 basis points in March,” said a Reuters report.

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Additionally, foreign investors have pulled out around Rs 10,000 from the cash segment of Indian markets so far in February, data showed.

“Markets have turned highly volatile, responding to alternate bouts of selling and buying. FIIs have been selling continuously and bears have been going short on stocks/segments where FII's holdings are large, and they expect FIIs to sell more,” Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

Technical Factors:

The Nifty50 breached 17000 on the downside in the first 30 minutes of trade pushing the index lower by over 2 per cent. The index has breached crucial short-term moving averages placed at 30 and 50 DMA.

The next big support for the index is placed at 200-DMA placed at 16,788.

Amid a rise in geopolitical tensions and rate hike fears from the US Fed, traders are advised to remain stock specific and avoid any aggressive positions, suggest experts.

"On a broader timeframe chart, this is seen as a time-wise correction where we could see buying interest on declines and selling pressure at higher levels. Until we see a clear breakout from this consolidation, the market is likely to continue such directionless moves and hence, the focus should now be on stock-specific trades," Ruchit Jain, Lead Research, 5paisa.com, said.

"The support end of the mentioned ‘Triangle’ pattern would be seen around 17130-17150 while 17570-17600 would be seen as resistance. For the week, we expect Nifty to trade within this range and only a breakout on either side would lead to the next directional move," he said.

Jain advises traders to focus on stock specific trades and avoid aggressive positions until we see a breakout on either side.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)