Stock Market: Sensex down 900 pts, Nifty below 16,600; financials auto hit
Traders in the U.K. and Europe have also dialed back rate-hike bets.
Economic risks are tempering expectations for how steeply the Federal Reserve will raise interest rates. Markets have priced out any risk of a half-point March liftoff. Traders in the U.K. and Europe have also dialed back rate-hike bets.
On Monday, Nifty entirely recouped initial losses seen after a gap-down opening (16658-16482) and closed near day's high. As a result, daily price action formed a sizable bull candle with small lower shadow, highlighting elevated buying demand that emerged from 52 weeks EMA placed around 16400
As per change of polarity concept earlier support of 16800 is now acting as an immediate resistance for the Nifty over past three sessions. Going ahead, only a decisive close above 16800 along with cool off in VIX and crude oil prices will add fuel to the ongoing pullback rally towards 17200 as it is the 61.8% retracement of February decline (17795-16203), placed at 17186.
Meanwhile, Monday's low will be the key monitorable in coming sessions as breach below Monday's low of 16356 on a closing basis would lead to extended correction towards 16200
