“Market will require some more price weakness and a lot more time correction before we can actually get back on track,” said Shah.
Gautam Shah, associate director of JM Financial, believes the markets are in a downtrend and are not going through a typical pullback.
"One could see some recoveries from time to time but the bottom for the market is not yet in place. There is no evidence on the charts to suggest that the worst of this downtrend is done," he said.
“Technical studies suggest that eventually the Nifty likely will break 10,100 and move into the band of 9700 – 9900, where a serious attempt to bottom out or stabalise is likely,” said Shah.
The current bounce in the market looks temporary and a selling opportunity, he said. "Moreover, the global equities as a basket too are in a challenging phase, which will continue for many weeks,” he said.
With regards to the Bank Nifty, Shah said the banking index looks weak at this point and once it breaks the level of 25,000, it could fall into the band of 23,500 to 24,000.
When asked about crude, he said the charts don’t look too bad.