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FIIs continue to be sellers in the market this week.

"We expect the domestic and FPI volumes to remain tepid during truncated week, as most long only investors to stay defensive and wait for clear trading trends to emerge in the last week of January," said Jaykrishna Gandhi, Head of Business Development, Institutional Equities at Emkay Global Financial Services.

The coming week will also be event heavy with multiple results and the interim budget on February 1 (Thursday).

"However, over the medium term, we expect flows to pick up gradually, given the inflation stability and expected political steadiness post elections," he said.

Nifty forms bearish candle, losses to deepen on slip below 21,300, if the index breaks the 21,300-mark in the coming sessions, the correction can deepen to 20,850. On the higher side, 21,400-21,500 may act as a hurdle, Gandhi said.

The banking sector weakness continues with mixed number being reported by the large private sector banks, HDFC Bank, Axis continuing the downtrend, he added.