Nifty 50, Sensex and the Nifty Bank index fell last week in line with our expectation. The Nifty Bank index, however, managed to bounce back recovering all the loss and close the week marginally higher. The Sensex and Nifty on the other hand recovered only some of the loss and were down about 0.9 per cent each.

There is not much room left of the downside. Strong supports are there to limit the downside and halt this corrective fall. As such we can expect the Nifty, Sensex and the Nifty Bank index to reverse higher again and resume the broader uptrend in a week or two.

FPIs sell

Foreign Portfolio Investors (FPIs) were net sellers of Indian equities last week. They sold about $1.41 billion thereby wiping out most of the inflows seen in the previous month. The FPIs have to start buying the

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