Most signals point to deeper correction in equities, Nifty may hit 14,500

If Nifty breaches support levels of 15,600-15,700, the index could fall to 14,500 levels

The market trend has been quite bearish since mid-February. A sequence of adverse macro events has occurred, including the Ukraine war (which drove up energy costs for fear of supply disruptions), China lockdowns (which means downgrades to global growth projections), weak domestic demand, high inflation, and the Reserve Bank of India (RBI) hiking interest rates to combat inflation.

Foreign portfolio investors (FPIs) have been bearish for an extended period. They started selling rupee assets in October 2021. Since January this year, FPIs have sold Rs 2.48 trillion of Indian equity. This is one reason why the rupee has fallen from Rs