Market well on its way to retest 2011 lows

Moneycontrol Bureau

Thank God it's Friday! That's the sentiment echoed by investors and market watchers alike, as the dreadful week came to an end. Rate sensitives like auto, metals and banks took it on the chin today, and the Nifty surrendered the 4,900-mark in mid-trade.
However, short-covering helped the Nifty recover some losses and close just above the 4,900-mark while the Sensex lost over 90 points.
As things stand, Nifty is around 200 odd points away from its 2011 low. One could get a pullback or maybe not, but surely all signs indicate it is headed for a retest of the year's lows. But the momentum or the pace with which the market is approaching the levels is making everyone quite nervous about whether 4700 will stick this time around.
"The next stop, clearly, should be the earlier low, which is closer to about 4700-4720," Ambareesh Baliga, COO of Way2Wealth told CNBC-TV18.
Other important factor would be how the US market does over the next couple of days. If there is more pain out there, then 4700 will be difficult to hold this time around.
Sudarshan Sukhani of Technicaltrends.com is one such analyst who feels 4700 to not going to hold too long. 
Meanwhile, the news from Europe is still not good and things are not stabilising out there. Compounded by the fact that the rupee is continuously hitting new lows