Globally, most of the markets have been doing well since last few days and Monday morning too, we had favourable cues from the peers. We kick-started the week on a positive note as indicated by the SGX Nifty tad above 17,600. During the first half, we witnessed some consolidation with some hint of profit booking. However, the selling aggravated as we stepped into the second half and as a result of this, market came off sharply to eventually close below the 17,400 mark by shedding nearly eight tenths of a percent from the previous close. This was followed by some consolidation in a small range for couple of days. However, things worsened towards the latter half of the week to resume the recent downward trend. Eventually Nifty ended the week below 17,000 with a sharp cut.

On Monday, the reversal came precisely after nearing the sturdy wall of 17,600 - 17,700. So if we look at it in the hindsight; we must accept the fact that market is respecting the levels precisely. Now the way market tumbled on Friday, recent swing low around 16,800 is in jeopardy now.

We will not be surprised to see it happening to test 16,500 - 16,200 zone. Let's see, next couple of sessions would be quite crucial and if any recovery has to happen, this is the best possible zone from where it should happen.

All eyes on banking space because the way it's placed, it is likely to dictate the short term trend.

Barring IT which was the sole outperformer, all other sectors succumbed to the selling pressure. The broader markets, too, took it on the chin. And hence, traders are advised to stay light on positions and even if market attempts to recover, one should avoid aggressive longs till the time 17,700 is not surpassed. Before this, 17,100 - 17,200 are to be considered as immediate hurdles.