Equities opened in the negative terrain Monday taking cues from lacklustre Asian markets. IT, FMCG led the decline while realty and metals resisted the fall.

The trend looks decisively down with the possibility of 200 DMA testing remaining quite high. Weekly & daily chart remain bearish and countertrend pullback till 4820 would provide more opportunities to sell. The Nifty is likely to test 4600 in the current move.

Positive Divergence formation on daily chart is initiation of base formation which will lead to next leg of the rally up. For the week the expectation is some up move before trend continuation.

Interesting times in the market as downtrend provides trading opportunities to day traders and range traders while the stock-pickers get the bargains they have been waiting for all the while.

A correction of 5% or more on index would bring lot of stocks in range of weekly oversold levels. Sector wise realty and metal continue to look weak while OMC, Gail and LT remain resilient, said Edelweiss report

At 9:15 am, National Stock Exchanges Nifty was at 4745.50, down 11.75 points or 0.25 per cent. The index touched an intraday low of 4731.65 and high of 4769.95.

Bombay Stock Exchanges Sensex was at 15880.15, down 35.50 points or 0.22 per cent. The 30-share index hit a low of 15820.40 and high of 15954.27.

BSE Midcap Index was up 0.46 per cent and BSE Smallcap Index moved 0.80 per cent higher.

Amongst the sectoral indices, BSE IT Index declined 0.40 per cent, BSE FMCG Index fell 0.32 per cent and BSE Bankex slipped 0.23 per cent.

BSE Realty Index was up 1.38 per cent, BSE Metal Index gained 0.78 per cent and BSE Auto Index moved 0.45 per cent higher.

HDFC Bank (-1.52%), Tata Power (-1.37%), HDFC (-1.24%), ITC (-1.15%), ONGC (-1.14%) were amongst the top Nifty losers.

Jaiprakash Associates (1.64%), Reliance Capital (1.47%), Unitech (1.41%), Jindal Steel (1.36%) and Siemens (1.34%) led the upmove.

Shares of Jubilant FoodWorks surged higher on listing. At 9:29 am, the scrip was at Rs 192.15, up Rs 47.15 or 32.52 per cent on the NSE. The scrip has touched a high of Rs 198 and low of Rs 160 in early trade. The company, runs the Dominos Pizza chain in India.

Market breadth was positive on the BSE with 1223 advances and 464 declines.

Meanwhile, the US stocks turned positive late in the session on Friday, recovering from a drop of more than 1 per cent earlier in the day as investors snapped up technology and materials shares.

The Dow Jones Industrial Average added 10.05 points, or 0.10 per cent, to end at 10,012.23. The Standard & Poor's 500 Index gained 3.08 points, or 0.29 per cent, to finish at 1,066.19. The Nasdaq Composite Index rose 15.69 points, or 0.74 per cent, to close at 2,141.12.

However, Asian counters were trading with minor losses Monday on the back of disappointing earnings and as oil prices rose. The Nikkei dropped 0.20 per cent, Kospi declined 0.29 per cent while Shanghai Composite slipped 0.31 per cent.