The Sensex was lower by 58 points at 28,434 and the Nifty dipped 32 points at 8,604.
Markets opened marginally higher but failed to sustain gains tracking mixed global cues. Meanwhile, investors are likely to remain cautious ahead of the two-day US Federal Reserve meet which begins on Tuesday.
At 11:20, the Sensex was lower by 58 points at 28,434 and the Nifty dipped 32 points at 8,604.
Technical analysts say that given the ongoing momentum and the chart structure, there is a possibility of the Nifty extending this downward move towards 8,550 – 8,500 levels.
“These levels are just 1.5% away from the current levels on the Nifty and hence, due to unfavorable risk to reward ratio, it would be difficult to short this market at current levels. 8,800 – 8,850 is now seen as an immediate resistance zone for the market.
Hence, with a slightly broader perspective, we expect the Nifty to continue its consolidation phase, where we could see a trading range of 8850 – 8800 to 8550 – 8500.
It’s advisable to trade with a proper exit strategy,” said technical analysts at Angel Broking in a morning note.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 66.98 crore on Friday, as per provisional data released by the stock exchanges.
Domestic institutional investors (DIIs) sold shares worth a net Rs 71.55 crore on Friday, as per provisional data.
Japanese stocks edged up to hit a 15-year high on Monday, with financial and real estate companies leading the gains, as investors bet on steady improvement in the Japanese economy and increased shareholder returns.
The Nikkei share average rose 0.3% to 19,309.23, hitting a 15-year intraday high at one point and extending its gain so far this year to almost 11%, outpacing many other markets.
However, Major US share indices ended lower on Friday on concerns of the impact of a strengthening dollar on corporate earnings while decline in crude oil prices led to profit taking in energy shares.
Meanwhile the Dow Jones and S&P 500 recorded their third straight weekly loss. Further, investors will keenly watch the US Fed meeting this week for its direction for the probability of an interest rate hike.
The Dow Jones ended down 146 points at 17,749.31, the broader S&P 500 ended down 13 points at 2,053.40 and the tech laden Nasdaq closed 22 points down at 4,871.76.