Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

There is pessimism in the markets as weak global economic outlook along with the pressing geo-political tension and the dangling rate hike worries has given investors the ammunition to exit equities at will.

Also, the US FOMC minutes outcome later this week is already making investors nervous on concerns that the Fed could be going more rate hikes to keep a leash on rising inflation menace.

Technically, after a muted opening the index corrected sharply and breached the important support level of 17150. Long bearish candle on daily charts and lower high formation on intraday charts is indicating further weakness from the current levels.

The correction wave is likely to continue till 16850-16800. On the flip side, 17050 would be the key intraday resistance zone, above which a minor pullback rally is possible till 17100-17125.

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