The BSE Sensex fell for the sixth straight session on Friday. The 50-share Nifty closed below the 200 day exponential moving average for the second day.
The Sensex declined 57 points or 0.30 per cent to 18,736, while the Nifty retreated 7 points to 5,651 after see-saw trade on Friday. Indian stock markets have hit a four-month low with the Sensex falling over 900 points in the last 10 sessions.
Markets have been under pressure after the Reserve Bank stuck to its cautious stance on future rate cuts and the DMK pulled out of the UPA government, creating political uncertainty.
"The domestic political situation is not helping economic worries that we have had over the last year. Markets are concerned if the key reform processes will continue going forward," Mayuresh Joshi said.
While many analysts are pessimistic in their outlook, Shardul Kulkarni of Angel Broking said a pullback rally is on the cards.
"The Nifty can hit 5,800-5,850 levels. The bias is positive as long as the markets trade above the 200 day simple moving average," he said.
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