The Indian markets ended with deep cut as heavy selling emerged after the Railway Minister announced hike in Freight rate. On daily chart nifty formed a bearish candlestick pattern along with higher volumes; it also breached its important support level of 8720 which was also its 20-day EMA so this suggests bears are getting into momentum for fresh leg of selling.

Yesterday there was expiry of February F&O series, which was very tough for the Indian markets. The Indian benchmark index NSE Nifty was almost down by 3 per cent. Furthermore, the constructive railway budget too could not provide cheer for the markets. Rather the market lost almost 1 per cent on the Railway budget announcement day expecting something more what the government announced earlier.

The Indian stock markets witnessed massive amount of volatility in today’s trade, ahead of Railway Budget as well as F&O expiry session. The indices saw a deep cut after mid-session and ended below crucial support levels. All the sectoral indices have been hammered badly, Auto Bankex and Capital Goods were major culprits, and were down around 200 points each.The Nifty index closed down by 83 points, while Sensex was down by 261 points at 28746 level at the closing bell.

The Indian markets started the day on positive note on back of positive cues from global markets. However as the day progressed markets were unable to hold on to their gains amid selling pressure in Pharma, Banking and other heavyweights. Index after a gap up opening extended the gains, but it failed to cross the strong supply zone which is in zone of 8830-8845 which suggests that bears are still holding the upper hand in near term.

Indian markets again closed flat after last hour sell off with strong trading in green since the morning. The markets are not sustaining the gains on bourses and experiencing a sell off ahead of derivative expiry and union budget. The railway stocks showed considerable correction on a day before the railway budget.