A morning walk down Dalal Street | Weakness likely to continue, Nifty may hit 10,500

The final tally on D-Street – the S&P BSE Sensex closed 363 points lower to end at 35,891 while the Nifty50 ended 117 points to close at 10,792. The 200-DMA for Nifty is placed around 10780.

Well, there are a lot of reasons which weighed on markets. Weak global cues to start with was a major overhang in the morning as most of the global markets resumed trading after New Year holiday. 

Apart from that, globally, weak China factory data and risk of a further slowdown in the world economy impacted global market. Metals & Auto index were the worst performers, down over 3% each.

Technically, the Nifty50 bounced back from its crucial moving average placed at 50-days EMA, and as long as the index trades below 10800, the chance of further profit booking cannot be ruled out.