After taking a step back evaluating the Indian markets, FPIs have opted to sell off their stake once again during quarter 1 of the Wednesday trading session. They cashed out a staggering 11,675 crores in equities and 5,045 crores in stock futures and options according to the NSE. DIIs on the other hand had a small chance of making net purchases adding to around 3,700 crores, which unfortunately was far below the counterbalance value of the enormous sell off.  

Other newer markets like India become more and more attractive to seasoned traders since the risk is relatively lower compared to developed countries like the US, Japan, or Germany. According Zee Business research, there doesn't seem to be a single influential factor to account for the selling, but after digging deep it possible can identify key pull factors for the sell signal. 

- India has still not been affected too hard by the US economy, however does show signs to be in watchful state.

- The weak market performance adds to the list of reasons to be concerned.

- Some FIIs are reportedly facing redemption calls, which is forcing them to reduce exposure in emerging markets like India.

Expect volatility until global and local indicators mix, otherwise some bullish support remains. The FII's pattern of buying small and selling big on alternate days continues.   

The range stays 23900-25100 till expiry. Should it break and close below 24450, fresh weaknesses could emerge. Next supports are at 24000-24150.   

a close below 54450 could open further downside towards 53500-53600. Strength will only come back on the upside if it closes above 55350.    

Alongside confirmed weakness, if these levels break larger caps, Mid and Smallcaps could see stronger selling.    

Long term investors should not panic. For investors who entered last month, sitting on decent profits now is the time to set an Nifty Stop loss at 24,450 or book partial gains. The larger trend still remains positive.

Market guru Anil Singhvi reccomends, the next few sessions should be tracked closely using global cues and key Indian market levels.