Seeing relentless FII selling; dollar movement key: Experts

Indian stocks on Tuesday drifted lower on Tuesday tracking global cues and the National Stock Exchange's 50-share Nifty ended below the 4,850 mark.

"We are probably at one of the most critical junctures of this overall market move that we have witnessed over the last few months," said Amit Khurana, Head - Research, Mangal Keshav Securities. "We are witnessing a classical battle between people who believe that market has the potential to go higher and some skeptics are suggesting that obviously the base effect is over and things from here onwards will be much more challenging."

"Our sense is that 4,800-5,200 is what we are maintaining as a range for quite a few weeks as our housecall," he said, but added that a sell-off taking place across emerging markets so if the technical bottom of 4,800-4,750 was to break, it could lead to a further downside.

Khurana said that investors need to keep a keen eye on the dollar movement and any strengthening in the greenback may lead to even more correction.

"General consensus is quite negative and the run-up to the budget this year," said Sajiv Dhawan of JV Capital Services.

"There are lot of people who are very sceptical, they feel market is going to slip a bit further, 4,600 levels has been spoken about very easily now but for us you stick to fundamentally solid quality stocks, you accumulate and you keep your leverage at lowest levels," Dhawan said, adding that even as there was money waiting on the sidelines, relentless selling by foreign institutional investors was breaking all support.