The Indian market resumed its losing run on Monday amid weak global cues. Sensex and Nifty closed over 1 per cent lower on continued foreign fund outflows. Sensex tumbled 638.11 points or 1.11 per cent to end at 56,788.81. During the day, it crashed 743.52 points to 56,683.40. Nifty fell 207 points or 1.21 per cent to close at 16,887.35.
Banking, auto and consumer durable shares were the top sectoral losers with their BSE indices falling 748 points, 616 points and 668 points, respectively. Mid cap and small cap indices on BSE declined 308 points and 352 points, respectively.
Market breadth was negative with 1,431 stocks ending higher against 2,120 stocks falling on BSE, while 153 shares were unchanged.
Here's a look at what analysts said about the direction the market is likely to take today.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
"The short-term trend of Nifty remains weak. Any sustainable move below 16,750 levels could bring sharp negative momentum on the cards. On the upside, 17,060-17,100 could act as a strong hurdle for the short term. The next important support is placed at 16,750 levels."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd
"For the traders now, 17,050/57,300 would be the key resistance level. As long as the index is trading below the same, the correction wave is likely to continue, below which the index could retest 16,800-16,700/56,100-55,800 level. On the flip side, fresh pullback rally is possible only after 17,050/57,300 above which the index could move up to 17,150-17,200/57,600-57,800."
Om Mehra, Technical Associate, Choice Broking
"The index remains in a sell-on-rise mode with multiple hurdles at 39,000-39,500 where fresh call writing has been observed. The next crucial support on the downside is placed at 36,600 which coincides with its 200 DMA. Foreign Portfolio Investor (FPI) pullouts worsen the situation because this further increases the domestic demand for dollars. Since the beginning of the year, the rupee has lost about 8.2 per cent in value terms against the dollar. The market cannot be precisely timed and controlled. We can, however, improve our investment by being more strategic and analytical."
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