Sensex, Nifty trade lower despite foreign fund outflows

The Indian market resumed its losing run on Monday, despite weak global cues. The Sensex and Nifty were under 1 per cent lower on continued foreign fund outflows. The Sensex fell by 638.11 points or 1.11 per cent to 56,788 at the end of the day. It dropped 743.52 points to 56,683 during the day. The Nifty fell by 207 points or 1.21 per cent to close at 16,887. The BSE indices fell 748 points, 616 points and 668 points, and banking, auto and consumer durable shares were the top sectoral losers. The Mid Cap and Small Cap Indexes on the BSE declined 308 points and 352 points.

The market breadth was negative, with 1,431 stocks ending higher against 2,120 stocks falling on the BSE, while 153 shares were unchanged.

Here's a look at what analysts said about the direction the market is going to take today.

The short-term trend of Nifty remains weak. If the sustainable move below 16,750 levels is likely to cause negative momentum on the cards. On the upside, 17,060 -- 17,100 could be a big hurdle for the short term. The next important support is at 16,750 levels. The resistance level for the traders would be 17,050 57,300. As long as the index is below the same, the correction wave is likely to continue, below which the index could test 16,800 -- 16,700 56,100 -- 55,800 level. On the flip side, a fresh rally is only possible after 17,050 57,300 above which the index could move up to 17,150 -- 17,200 57,600 -- 57,800. The index is in a sell-on- rise mode with multiple hurdles at 39,000 -- 39,500 where fresh call writing has been observed. The next crucial support on the downside is at 36,600, which coincides with its 200 DMA. Foreign Portfolio Investor FPI pullouts worsen the situation because it increases domestic demand for dollars. The rupee has lost 8.2 per cent in value against the dollar since the beginning of the year. The market can't be controlled and timed precisely. We can improve our investment by being more strategic and analytical.