Bloodbath on D-Street: Is more downside on cards?

It was a disastrous close to the trading week. Profit booking triggers across-the-board dragged the Nifty below the all important 5,400 mark.

The 30-share BSE Sensex plunged 441.16 points or 2.39%, to close at 18,008.15 and the 50-share NSE Nifty tanked 131 points or 2.37%, to settle at 5,395.75. However, European markets were trading 0.5% higher, at the time of closing of Indian equities. Nikkei was up 1% while other Asian markets were shut. Is more downside in store? Investment Advisor, Gul Tekchandani says that even if the downside is restricted at 5300, after budget they will get stable and once again there might be little bit of uptick from there on. Mitesh Thacker, Technical Analyst is optimistic that the markets are likely to bounce back to 5620-5650, as long as they remain above 5400. Deven Choksey of KR Choksey Securities warns that somewhere near this level we would be seeing some amount of stability and foreign institutional investors (FIIs) could once again start selling if markets sustain recovery for some period. According to Rajesh Jain, Independent Market Strategist risk aversion has come back big time in the markets.