The indices closed lower dragged by the metal and banking names. At close, the Sensex was down 524.96 points or 0.89 percent at 58,490.93. The broader Nifty was down 188.30 points or 1.07 percent at 17,396.90. About 995 shares have advanced, 2,308 shares declined, and 132 shares are unchanged.

"Nifty made a bearish bar today. It closed at 17,396 , down by 188 points since Friday's close. Nifty closed below its support range on 17,425-17,450 , this is a further bearish sign. Nifty can now test its support of 17,250 and any close below 17,200 may trigger a bearish trend. Traders having long positions should consider booking profits on every rise. New long positions should be initiated only on closing above 17800," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.

Shrikant Chouhan, Head-Equity Research (Retail), Kotak Securities Ltd
said, "Benchmark Nifty has formed a strong reversal formation which clearly indicates high chances of a further correction from current levels. The texture of the market is weak and downward momentum could continue in the short run. For the next few trading sessions, the 17,525 levels could be the sacrosanct resistance level for the traders, and trading below the same we can expect further price correction up to 17,300-17,250 levels, whereas trading above 17,525 may trigger a quick pullback rally up to 17,625-17,675 levels. Contra traders can take a long bet near the 17,250 support level with a strict 50 points stop loss."

Nagaraj Shetti, Technical Research Analyst, HDFC Securities said, "a sharp profit booking has triggered in the market and Monday's confirmation of short-term top reversal pattern is likely to drag Nifty down to 17,200-17,150 levels in the next few sessions. Any attempt of upside bounce from here could find strong resistance at 17,625 levels. However, a move below 17,150 is likely to open more broad-based weakness in the near-term."

Mohit Nigam, Head - PMS, Hem Securities, said, "While the markets are keenly awaiting clarity on Fed’s taper plans in terms of timeliness and quantum, we believe it may give advance notice on tapering in this week’s meeting, followed by a formal announcement at the following meeting in November. In the 50-share pack Nifty, HUL was the biggest gainer, up 2.87 percent. ITC, Bajaj Finserv and HCL Tech were among other gainers. Tata Steel was the top loser in the pack, down 9.58 per cent. JSW Steel, Hindalco and UPL were other losers in the pack."