Intermediate correction to continue

The current chart projections suggest that the Nifty could drop till 4075-4100 points.

Another massive sell-off in mid-week meant that the broad market lost more ground but there was a partial recovery on Friday. The Sensex was down a nominal 0.65 per cent closing at 15,138 points while the Nifty lost about 0.98 per cent to close at 4,401 points.

The Defty lost 0.68 as the rupee gained again, after the RBI’s latest monetary policy was released. The Nifty Junior was down 0.61 per cent.

The market breadth remained negative while volumes dipped through the week. The broad BSE 500 was down 0.44 per cent. The Bank Nifty was however, a gainer to the tune of 2.3 per cent on the basis of a relatively benign RBI policy.

The CNX IT dropped a disproportionate 4 per cent. Institutional attitude showed a divergence with domestic funds being net buyers while FIIs sold. Read more in Business Standard