Bears reappeared on Dalal Street as the market slumped in afternoon trade, with the benchmark indices falling below crucial levels on October 28, the day monthly futures and options contracts expired.
“Expiry day witnessed all-round profit booking ranging from retail facing lenders to FMCG and across metal names.
A mixed bag when it comes to earnings seems to be another reason forcing investors and traders to book profits on the expiry day.
“The September quarter earnings have been a mixed bag, so far, wherein several companies have reported margin pressure due to high commodity prices and supply-side issues.
All sectors were caught in a bear trap with banks, metals and realty being the prominent losers.
“The fall, perhaps, is hinting the resumption of the downswing on the back of a negative advance-decline ratio which decisively favoured bears as three stocks declined for every stock which rallied.
He feels if the Nifty50 sustains below 18,000 mark then there are higher chances that it can be heading towards 17,500, the 50-day moving average.