The big support for the index is placed around 10,398 and a fall below could take the index towards 10,300-10,200 levels
The Nifty50 breached key support levels in the past five trading session and closed by about 3 percent lower for the week ended February 9 signaling a pause in the momentum which we saw in the beginning of the year 2018.
Apart from domestic factors such as rising crude oil prices, high valuations, concerns over higher fiscal deficit as well as the imposition of long-term capital gains tax (LTCG) of 10 percent weighed on sentiment — the larger part of the decline can be attributed to global markets.
Investors are advised to stay light and avoid bottom fishing at current levels. The market has turned from buy on dips market to sell on rallies. Hence, any bounce back should be used to create short positions, suggest experts.
The big support for the index is placed around 10,398 and a fall below could take the index towards 10,300-10,200 levels.
