The market declined for second consecutive day on Thursday amid weakness in financial stocks. The Sensex fell 382.91 points or 1.02 per cent to 37068.9, while the Nifty plunged 97.80 points or 0.89 per cent to 10948.30.
The market breadth was weak with 898 shares gained while 1,583 shares fell. A total of 158 shares were unchanged. The Small-Cap Index fell 0.17 per cent and the Mid-Cap Index shed 0.62 per cent.
Technically, the short term trend of the Nifty continues to be negative. But, there is a possibility of an upside bounce from the lower levels in the next 1-2 sessions.
"Index opened day lower and closed a day on negative note at 10948 with loss of 98 points and formed a bearish candle of second day. Now Index has good support near 10900-10850 zone holding above said levels can see good move towards 11010-11080 zone which is immediate resistance on higher side. Nifty Bank closed a day at 27305 with loss of 500 points forming bearish candle on daily chart, support for Index is coming near 27200-27100 zone and resistance is coming near 27500 -27700 zone," Rohit Singre, Senior Technical Analyst, LKP Securities said.
Traders are advised to focus on stock specific approach and look for potential candidates which could provide good returns in next leg of upmove. The immediate resistance for the Nifty is seen around 11080-11140 which we believe would be surpassed soon, analysts said.
"Expiry led volatility and risk averse sentiment of investors slid the market to below 11000. Rally is used as an opportunity to sell than accumulate as the risk regarding weak fiscal position of the government and possibility of further downgrade in earnings influenced investors to stay sideline," said Vinod Nair, Head of Research, Geojit Financial Services.