Markets are playing out as anticipated after the Nifty index broke below crucial supports at 4,900 on Friday. The breach has opened up further downsides for Indian equities.
A bearish continuation Flag (marked red) is now visible and has been broken.
The 52 week lows around 4,531 should now get tested and the 4,530-4,550 remains the likely target from hereon.
Traders who have missed the Friday session would now be staring at a gap down opening. The short term setups look oversold so a small bounce is possible and traders can add shorts.
The reversals/stop loss should now be at 4,906. Pullbacks towards 4,900 should be used to build shorts.
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