New Delhi, March 11 : Continued selloff in global markets due to uncertainty over rate cuts impacted the domestic market sentiment, which is currently at an overbought level, Vinod Nair, Head of Research at Geojit Financial Services, said on Monday.
While the Nifty 50 closed at 22,332.65 on Monday, down 160.90 points or 0.72 per cent, the Sensex ended at 73,502.64, down 616.75 points or 0.83 per cent.
The stronger-than-expected US nonfarm payroll data and caution ahead of the release of US inflation data on Tuesday kept the investors on edge, Nair said.
The broader market continued its underperformance due to valuation concerns, while investors are rebalancing their portfolios to include safe-haven assets such as gold, he added.
Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty has been fluctuating within an ascending channel, displaying a pattern of higher highs and higher lows.
The overall trend continues to be bullish, although an intermediate corrective phase is currently in progress.
In the short term, Nifty could experience weakness, possibly leading to a decline towards the range of 22,200-22,250.Looking at the upside, immediate resistance is identified at 22,400 based on closing prices.
Kunal Shah, Senior Technical and Derivative Analyst at LKP Securities, said the Bank Nifty index encountered strong resistance from bears at higher levels, prompting a downside move.
Immediate support for the index is at 47,000-46,800 levels, and a decisive close below this range could intensify the selling pressure.
To resume the uptrend towards all-time high levels, the index must decisively surpass the 47,700-mark.
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