Indian equity market witnessed a sharp profit booking in Tuesday's trading session after a one-way vertical rally. The weakness can be attributed to selling in the global markets after US 10-year bond yield moved above the 1.80 mark during the day. FIIs are net sellers for the last 4 trading sessions while the sharp selling in last hour of trade indicates that we may have another day of selling by FIIs.

Technically, 18,300-18,350 is a minor resistance zone where Nifty witnessed a Bearish Engulfing candlestick pattern that may lead to further weakness. Tuesday's low of 18,085 is at 9-DMA (daily moving average); below this, 17,950-17,800 will be the next important support level while 17,650 is critical support at any correction, however, every correction is a good buying opportunity.

For the Bank Nifty, 38,800-39,100 is an important resistance zone and 38,850 is a 61.8 percent retracement of the previous fall where it witnessed sharp profit booking in late trade. On the downside, 38,000 is an immediate and psychological support level while 37,500-37,000 will be the next major support levels. On the upside, if it manages to take out the 39,100 level then we can expect a rally towards the 40,000 level.