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Key Indian indices fell on September 22 as concerns over the second wave of virus infection weighed down investor sentiment. Sensex closed 300 points, or 0.79 percent, lower at 37,734.08 while Nifty ended at 11,153.65 with a loss of 97 points or 0.86 percent.

Based on the sharp recovery since March 2020 a near-term market consolidation cannot be ruled out. Going ahead, from now, the ground-level reality of the economy will drive the stock market momentum and investors are advised to keep booking profits as and when the market makes fresh near-term highs," Prashanth Tapse, AVP Research at Mehta Equities said in an interview to Moneycontrol's Sunil Shankar Matkar.

We are constructive on the market with an overweight stance. Accordign to Emkay's estimates, Nifty is trading at about 18.5 times FY22 estimates - a slight premium over historical average of 16 times or so, Nirav Sheth, Chief Executive Officer, Emkay Institutional Equities, said in an interview with Moneycontrol’s Kshitij Anand.

Sensex and Nifty look set to add to yesterday’s losses with both the benchmark indices trading in the red, and volatility sitting above 22 levels. While analysts say a correction was expected, with equity markets having surged significantly in recent months and valuations being expensive. The reason behind the fall is largely the renewed fear of lockdown and a second wave of coronavirus across Europe, which was partly responsible for the abundant liquidity fueling domestic markets. Now, the question remains when to tap into this market to reverse any loss that investors have made.

As Nifty ended lower for the third straight session on Monday, it formed a bearish candle on the daily chart. Vinod Nair of Geojit Financial Services said with high valuations and worries that earnings may not justify such valuations anytime soon, markets may trade with uncertainty for the time being.

The bloodbath in the market on Monday may have just been a start to a correction in the near term, fear analysts as valuations had run up far ahead of fundamentals. Besides, the surging number of coronavirus cases have triggered possibilities of a second round of lockdown in some world economies.

For the expiry week,11,265 will be a strong support for Nifty while 11,600 will act as resistence, Rajeev Srivastava, Chief Business Officer at Reliance Securities, said in an interview with Moneycontrol’s Kshitij Anand.

The market witnessed sharp selling pressure in the afternoon and closed with more than 2 percent loss on September 21 as traders worried about rising coronavirus cases again in several nations including Europe.

The primary market has stolen the focus from the secondary market, with two issues putting up a stellar show during the week gone by and three lined up for the week ahead.

Gains fizzled out in the last hour-and-a-half of Friday’s session, as Nifty not only turned downward, but also saw wide swings on either side. The market showed a strong and positive start to the session. The beginning was better than expected. The good thing was, Nifty maintained those opening gains through most part of the session. It was the last hour-and-a-half that saw the entire day’s hard work wiped out.

As Nifty ended marginally lower on Friday, it formed a bearish engulfing candle on the daily chart. Nagaraj Shetti of HDFC Securities said Nifty may trade range bound with a negative bias in the short term. “There is a possibility that the rangebound movement may continue over the next 1-2 sessions.

The market lost momentum in last hour of trade amid mixed global cues on September 18 as bears turned strong due to selling pressure in banking & financials though hefty buying in pharma stocks capped losses to some extent.

When too many companies line up for IPOs, the liquidity is squeezed out of the market causing major corrections, Umesh Mehta, Head of Research, Samco Group, said in an interview with Moneycontrol’s Kshitij Anand.

If Nifty sustains above the 11,500 level it is expected to test its level of 11,800 by the expiry next week. The key level to be respected is 11,300-11,350, Gaurav Garg, Head of Research at CapitalVia Global Research Ltd, said in an interview with Moneycontrol’s Kshitij Anand.

We expect that the next leg of rally is likely to be driven by banking wherein most of the negatives are priced in. We also remain positive on the rural economy and resilient sectors like IT, pharma and private banks. We believe the market can move towards previous all-time highs in the medium term," said Pankaj Pandey, Head – Research at ICICI Direct in an interview to Moneycontrol's Sunil Shankar Matkar.