The markets are trading on a soft note with the BSE Sensex at 17,362, down 124 points and the Nifty at 5,275, down 48 points.
The stock markets are likely to continue with a downward bias in spite of the half percent gains in key indices last week.
Asian markets are down on Monday morning and even Dow Jones futures are trading one percent lower.
Besides global cues, most of the market action will be determined by expectations of the March quarter results this week. Infosys will announce its result on Friday April 13th. Besides, economists and analysts will also try to read the minds of central bankers, who will announce the annual monetary policy on April 17.
From the technical point of view, the weekly charts indicate that the 17,300-level is crucial. As long as the index stays above 17,300, there is a possibility of the Sensex attempting pull-back rallies. If this level is broken, the next major supports are at 16,900 and 16,700.
On the upside, the Sensex needs to sustain above 17,400 and cross 17,660 to reach 17,850 and 18,100, which are major resistance levels. The Nifty is likely to seek support around 5,285-5,260, and face resistance around 5,360-5,385 for the week.
All the sectoral indices are in the red. BSE Capital Goods, Metal and Oil & Gas indices are leading the losses, down 1% each.
BHEL, Punj Lloyd, Larsen & Toubro and Alstom Projects India, down 2% each, are the top losers from the Capital Goods space.
Hindalco Industries, Tata Steel, Sesa Goa and Sterlite Industries, down 2-3% each, are the notable losers from among the Metal stocks.
BHEL, Hindalco Industries, Larsen & Toubro, Gail (India) and Jindal Steel, down 2% each, are the top Sensex losers.
Tata Power and Hindustan Unilever are among the only gainers from the pack.
Among individual stocks, IVRCL is trading higher by 5% at Rs 74.25 on reports that the Subhash Chandra-controlled Essel, which is now the largest shareholder in IVRCL, has offered to buy out promoter Sudhir Reddy's stake at Rs 90 per share.
The overall market breadth is negative as 573 stocks have declined against 461 advancing ones, on the BSE.
