Market set-up: Nifty defended 16,000, may try it again

Indian equity benchmarks BSE Sensex and NSE Nifty50 are likely to open lower on Thursday tracking weakness across global markets.

The bulls would still be hoping that since the Nifty defended 16,000, that is the floor for the market. However, the market's texture is telling that it is a matter of when that is taken out and not just that perhaps even March lows.

In March, the lowest was 15,671 on an intraday basis and 15,863 on a closing basis.

Why is that important? Since the rally started, it was the only close below 16,000. There hasn't been a close below 16,000, which is why 16,000 becomes an important line because in a market-driven so much by algos, if that mark goes it has ramifications for the market.

The Bank Nifty for the last two days has ended in the green and in fact, for the week, the index is up while the Nifty is down 2 percent. The market thesis is value stocks over the growth and expensive stocks because that is the theme that played out for two years and just made valuations very expensive and a reset of those valuations can be seen.