Nifty has witnessed a sharp correction from the levels of 12,000 on expected lines. It has declined 3 percent from the recent high.

The outperforming sectors like Pharma and IT started the corrective action, amid profit-booking at the start of the week, followed by banking and other sectors.

Mid-caps and small-caps continued to underperform the broader markets and failed to cross the long-term moving averages.

We believe Nifty will find support near its band of short-term averages of 11,430-11,480 and also 61.8 percent retracement of the recent up move from 10,800 to 12000.

On the higher side, the resistance levels would continue to be in the range of 12,050-12,100 levels.

India VIX has gained 8 percent to close at 22 levels as volatility has spiked due to second-quarter results season and global events.

Bank Nifty retraced sharply from its 200-day average on a closing basis, witnessing a sharp selloff from the recent highs of 24,100.

On the downside, multiple supports are placed at 22,300-22,500 levels and we believe Bank Nifty will outperform other sectors from here.