A morning walk down Dalal Street | Nifty can slip further towards 9,952-10,000

Indian markets ended lower for the fourth straight session in a row, driven largely by weak global cues as well as mixed results from India Inc.

The S&P BSE Sensex breached 34,000 while Nifty bounced back after retesting 10,100 levels to hit a 6-month low. The S&P BSE Sensex slipped 287 points to close at 33,847 while the Nifty50 ended 98 points to end at 10,146. The broader market indices also reported a weak closing, with BSE Midcap & Smallcap falling by 0.9 percent and 1.2 percent respectively.

Barring power and realty companies which ended marginally higher, all the other sectoral indices ended in the red with IT, Healthcare & FMCG being the top losers, down 1.2-2.8 percent.

Movement of crude oil prices and currency would be closely monitored in the coming sessions. Apart from the above factors, NBFC stocks will be in focus. Looking at the liquidity situation, the Reserve Bank of India (RBI) has canceled the Certificate of Registration of 31 non-banking financial companies (NBFCs).

Technically, analyst maintains their cautious view on the Indian markets in the near term. While there could be some intermediate bounces, traders are advised to use rallies to go short on Nifty.

The index has recently corrected by around 600 points from swing high of 10710 to 10102 levels. The immediate trend is downwards but if it manages to cross and hold above 10200 zones then a bounce could be seen towards 10250 and 10333 levels. If the index holds below 10138, it could open a further decline towards 10000-9952 zones.