The Nifty50 has broken 11,800 mark and formed bearish candle on the daily charts, but still defended 11,750 which are crucial support levels.
The market corrected more than one percent and erased most of last week's gains on October 26. The broader markets too corrected with the Nifty Midcap index falling 1.7 percent and Smallcap down 1 percent.
The BSE Sensex slipped 540 points or 1.33 percent to 40,145.5, while the Nifty50 has broken 11,800 mark, down 162.60 points or 1.36 percent at 11,767.80.
Here are 4 key factors that weighed on the benchmark indices:
Reliance Industries shares corrected 4 percent after Reliance Retail Ventures informed of an interim order passed by the Emergency Arbitrator in the arbitration proceedings invoked by Amazon under a shareholders' agreement with the promoters of Future group.
Reliance Retail Ventures said it had entered into the transaction for the acquisition of assets and business of Future Retail under proper legal advice and the rights and obligations are fully enforceable under Indian Law.
"RRVL intends to enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay," Reliance Industries said in a statement.
Metals and others
The Nifty Metal fell the most among sectoral indices, down 3.5 percent after JSW Steel reported lower than expected earnings for the quarter ended September 2020.
The stock itself fell 4 percent, while others Jindal Steel & Power and Hindalco Industries corrected between 5 percent each, and Tata Steel was down 3.6 percent.
Among others, Nifty Bank fell 1.65 percent while Auto corrected over 3 percent and Pharma 1.5 percent.
Asian markets were trading weak at the time of writing this article, as coronavirus cases increased in the United States and some European nations which raised concerns over global growth.
China's Shanghai Composite was down 0.82 percent and South Korea's Kospi fell 0.72 percent, while Australia's ASX 200 declined 0.18 percent and Japan's Nikkei was down 0.09 percent.
United States reported the highest single-day spike of over 85,000 cases on October 23, while France also recorded more than 50,000 cases in a day on October 25. Italy ordered to close bars early and shut gyms, while Spain announced nationwide curfew to control rising infections.
The Nifty50 has broken 11,800 mark and formed a bearish candle on the daily charts, but the index still defended 11,750 which is a crucial support level.
Experts feel the market is still in the range of 11,700-12,000 levels, but if it breaks 11,700 then it could go down below 11,600.
"We threatened the lower end of the range by piercing 11,750 on an intraday basis but the Nifty was quick to bounce back to close above it. If the level of 11,700 is breached, we can slide down to targets closer to 11,450-11,500," Manish Hathiramani, Proprietary Index Trader and Technical Analyst at Deen Dayal Investments told Moneycontrol.Disclaimer: "Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Moneycontrol."