The market seems to be in a complete bear trap as the benchmark indices fell more than 2 percent on May 12, dented by selling across sectors. Global growth concerns, higher-than-expected US inflation and contraction in UK economy weighed on sentiment in global counterparts including India.
The BSE Sensex plunged 1,158 points to 52,930, while the Nifty50 tanked 359 points to 15,808 - continuing downtrend for fifth consecutive session and formed bearish candle on the daily chats.
"A long bear candle was formed on the daily chart, which is indicating steep selling in the market. The short term trend of Nifty continues to be negative," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
He feels there is a possibility of further weakness down to 15,670 and one may expect downside breakout of it in the coming sessions. However, there is a higher possibility of Nifty forming lower bottom reversal around 15,500 levels and confirmation of reversal pattern could open upside bounce in the market, Shetti said.