Indian market witnessed a sharp sell-off in today's trading session amid stable global cues. We are in expiry week and expiry is all about momentum where last week, Nifty witnessed closing below its 50-DMA means momentum is in favor of bear. Heavyweight Reliance puts pressure on the market while withdrawal of Farm laws bills and poor performance of Paytm IPO are some excuses for a long-awaited correction. FIIs are selling continuously in the Indian market as they feel valuations are stretched however they still have a long-term bullish view on India.
Technically, Nifty witnessed the breakdown of head and shoulder formation that is a sign of the first meaningful correction where rising 100-DMA around 17100 will act as an immediate and strong support level. Nifty tried to hold the 17300-17250 support zone in late trade but it is vulnerable to fall again at any pullback where 17500 is an immediate hurdle while 17600 will act as a critical hurdle.