The BSE Sensex fell more than 700 points or 1.2 percent to 56,463. The Nifty50 corrected over 200 points to 16,959 and formed a bearish candle on the daily charts. The trends on the SGX Nifty indicate a positive opening for the broader index.
The key support level for the Nifty is placed at 16,764, followed by 16,569. If the index moves up, the key resistance levels to watch out for are 17,215 and 17,471.
US stocks surged on Tuesday on the back of stronger-than-expected corporate earnings, but bleak forecasts on global economic growth pushed bond yields up and drove oil down. The Dow Jones Industrial Average rose 1.45 percent, the S&P 500 gained 1.61 percent and the Nasdaq Composite jumped 2.15 percent.
