Stock market analyst, Vishwas Agarwal stated that on the Bombay Stock Exchange (BSE) above 13,350, some trading upmoves up to 13,876 level, will be expected only on positive news from Fed meet in US.

If any encouraging news will emerge of this meeting, investors can expect short covering to happen after 2,000 points drop, but this relief recovery cannot be considered as a come back of bull trend, it’s just a relief recovery.

Mr. Agarwal also said that the stock markets may see more weakness in the coming days as the existing fall was due to selling of actual delivery that will take time to soak up the losses in earlier location.

“Overall market mood is still cautious. Trade in small quantities with fixed stoploss. If upside of 13,786 level sustains for more than two days then only we can expect further 300 to 500 upmove. Reliance Industries, SBI and Relcap are trend decider stocks,” he added.

While commenting on the market condition, technical analyst, A Sureshkumar Iyer, Asit C Mehta Investment Interrmediates, said, “On Sep 16, the Nifty continued its weak momentum in the early trades due to the lack of conviction on the buying side. However, during the latter part, the Nifty recovered with some sort of short covering couple with buying interest in pivotal, particularly in PSU bank stocks. The Nifty opened at 4,072.55 and made low of 3,919.35. The recovery pushed the Nifty to close at 4,074.90, marginally up by 3 points. The Nifty made a high of 4,090.10. The Nifty September futures closed with a premium of 8 points. The market breadth was pretty much weak with 376 advances, 838 declines and 29 unchanged.”

In his weekly outlook report, he also said that the breach of crucial support level will push the Nifty to touch July low levels.