"There isn't a wave for Modi like it was in 2014 but he is clearly in the fulcrum of all debates," said Gautam Chhaochharia, Managing Director and head of India research at UBS Securities.
The top gainers from NSE included Indian Oil Corporation, HPCL, Vedanta, BPCL and Indiabulls Housing Finance while the top losers included Kotak Mahindra Bank, Reliance Industries, Cipla, HDFC Bank and Asian Paints.
Nifty February 10,800 Call has displayed a Bow-Tie pattern suggesting a further rise.
Based on earnings, valuations have come to long-term averages, so the risk-reward looks favourable for Nifty stocks, said DSP Investment's Gopal Agrawal
Bank Nifty needs to cross 26950 decisively for target of Rs 27200-27300.
The breadth of the market favoured the advances with 1083 stocks advancing and 582 declining while 394 remained unchanged. On the BSE, 1344 stocks advanced, 962 declined and 139 remained unchanged.
Sahaj Agrawal of Kotak Securities said investors can gradually accumulate select stocks for an expected breakout on the higher side.
Mazhar advised traders to remain positively biased and should create fresh long positions with a stop below 10,600 on closing basis and look for initial targets placed around 10,890 kind of levels.
The S&P BSE Sensex rallied over 400 points after 13 sessions while Nifty50 reclaimed 10700 levels. It posted best daily gain since Jan 31, 2019, when the index rose by 1.68 percent.
Being a sideways market we should play with strength and stay stock specific, says Pushkaraj Kanitkar, Associate Vice President at GEPL Capital Ltd.
The breadth of the market favoured the advances with 1127 stocks advancing and 431 declining while 486 remained unchanged. On the BSE, 1155 stocks advanced, 496 declined and 70 remained unchanged.
Shabbir Kayyumi of Narnolia Financial Advisors said Nifty trading below crucial support (10,602) will push prices towards 50 percent Fibonacci retracement levels placed around 10,561
Investors are advised to stay cautious and use rallies to build short positions in the Nifty
Mazhar Mohammad of Chartviewindia.in said in next session if market closes in a positive zone then it shall act as a trend reversal sign in favour of bulls which shall get further strengthened if Nifty manages a close above 10,722 levels.
Sensex was down 145.83 points at 35352.61, while Nifty was down 36.60 points at 10604.40.
Nifty IT was the biggest contributor to the market turning red led by loses from Infosys, Tata Consultancy Services and Wipro which were down over 2 percent each followed by Tech Mahindra, KPIT Tech and Tata Elxsi.
Kotak expects net profit of Nifty50 companies to grow 13 percent in FY19 led by banks and Coal India
The top gainers from NSE included Vedanta, Bharti Airtel, ICICI Bank, BPCL and Grasim Industries while the top losers included NTPC, Infosys, TCS, Dr Reddy's Labs and Tech Mahindra.
Crucial level to watch out will be 10583 as a close below that will lead to further sell-off to 10440.
The breadth of the market favoured the advances with 1047 stocks advancing and 470 declining while 518 remained unchanged. On the BSE, 1001 stocks advanced, 431 declined and 54 remained unchanged.
"A close above 5-day EMA (10,742) will change the current bearish sentiment," said Shabbir Kayyumi of Narnolia Financial Advisors.
The last time when Sensex fell for seven consecutive days in a row was back in January 2018. The index fell from January 30 to February 7, 2018
Mazhar Mohammad of Chartviewindia.in advised traders at this juncture to take a neutral stance and should refrain from creating fresh short positions.
Jayant Manglik, President at Religare Broking, feels traders have no option but to follow the prevailing bias and prefer hedged positions instead of naked trades.
PSU banks were down led by IDBI Bank which was down 5 percent followed by Vijaya Bank, Punjab National Bank, Indian Bank, Bank of India and Bank of Baroda.