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Markets started the week with a sharp cut, in continuous to the prevailing corrective phase. The fear of aggressive rate hikes dented sentiment and triggered a gap-down start however rebound in the last hour trimmed some losses. Consequently, the Nifty index closed at 15,774; down by 2.6%. On the sector front, all the indices ended with losses wherein IT, Metal and Banks were the top losers. The broader indices too lost over 2.5% each.

All eyes would be on the CPI data to be released today evening. Moreover, the US Fed meet on Wednesday would induce further volatility. Nifty has almost retested the March 2022 low i.e. around 15,671 levels and its breakdown would pave the way for further decline towards 15,450 levels. In case of a rebound, the 15,900-16,200 zone would act as a hurdle. We recommend using rebound to create shorts in the index until we see some sign of reversal. Stocks, on the other hand, are offering opportunities on both sides so plan accordingly.