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Below is quote on Daily Market Analysis by Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets resumed the corrective tone and shed over one and a half percent.  Initially, the Nifty opened with an upside gap, tracking firm global cues and buoyancy in banking major, ICICI Bank, in reaction to its numbers. However, the move fizzled out in no time and the index settled closer to the day’s low at 21,238.80 level.  All key sectors, barring pharma, ended lower wherein realty, metal and energy were among the worst hit.  The broader indices too witnessed a sharp cut and lost nearly 3% each.

The pace of decline shows more pain ahead and the 20,800-21,000 zone may offer some support.  Earlier, we were seeing private banking majors facing the heat but it is now cascading to the other sectors and also to the broader indices. We thus recommend keeping a check on leveraged positions and maintaining shorts too.

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