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Quote on Market Morning Inputs by Shrikant Chouhan, Head Equity Research, Kotak Securities

On Monday, amidst weak global sentiment, our market experienced a sharp correction. The Nifty declined by over 3 percent, while the Sensex dropped by more than 2,200 points. All major sectoral indices were in the red, with the metal and real estate sectors facing the largest declines—metal fell by 6 percent and real estate by 5 percent.

Technically, the market opened significantly lower, but there was an intraday recovery from the lower levels. The presence of a large bullish candle at the bottom of the decline is a positive sign. However, if a supporting candle maintains the bullishness of the previous candle tomorrow, we could see a substantial pullback in the market.

Keep an eye on the 22000 levels for further movement. If the Nifty remains below 22000, it may lead to additional weakness; otherwise, we could see a pullback to mitigate the recent sell-off. Resistance exists at 22500 and 22800. Should the Nifty fall below 22000, it may gradually drop to 21700 levels. The strategy should be to reduce the weak long positions between 22500 and 22800 levels.

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