Stock Market lost steam after eight sessions of gains as select profit-taking in banking, metals and IT stocks ahead of the US Fed’s rate-setting meeting fueled caution amongst the investors.
Also, the rally has been continuous and fatigue was bound to happen the trigger was the Fed meeting and the sharp fall in global crude oil prices, which reignited fears of a demand slowdown amid recession woes.
Technically, the Nifty has formed a small bearish candle and as long as the index is trading above 18050, the uptrend formation is likely to continue.
Above the same, the index could move up to 18200-18250. On the other hand, a quick short-term correction is possible if the index slips below 18050, and below the same, it could retest the level of 17950-17925.
– Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.