Indian markets have been facing steep correction over the last few trading sessions. While the market participants are confident about long term view on Indian companies, the short term mood is negative. The quick selling in broader market has led to steep decline in mid-cap and small-cap stocks.

Market viewpoint by Mr. Rajiv Singh, CEO, Karvy Stock Broking Ltd.....

“Market has been falling since the Budget day as FIIs have started selling after the "super rich tax" was announced. On Thursday, once Finance Minister clarified in the parliament that there is no relief for FPIs registered as Trust, all hopes were dashed and the selling has further accentuated. In the meantime, market has also started factoring in weak corporate results, slow progress of monsoon, lack of any stimulus package from Govt to spur consumption slowdown & no concrete steps being taken by the Govt to address liquidity crunch. This is besides the possibility of Trade War causing global slowdown and money moving towards precious metals like Gold.

Today's fall was caused by follow on selling by FIIs in the index heavyweights besides weak global cues. Market is also bracing for the disappointment which may be caused by only 25 bps rate cut by the US Fed as against earlier expectation of 50 bps cut.

The beaten down stocks from sectors like Auto, Pharma & Metals have seen pull back rally in today's trade. Even technically, based on derivatives data, today Nifty looked weak with next support levels placed at 11280-11300, and resistance at 11550-11600. Most stock specific actions are likely this week on the back of their quarterly results. However, we do not see Nifty going down below 11100 during the current leg of correction.”