Be cautious in such a market and avoid midcap counters purely on tips, says Sajeev Dhawan, technical analyst, on CNBC-TV18. It is best to accumulate fundamentally good stocks on dips, he adds.

It was a bad day on the market today. The bears did a thorough job of cleaning up and the bulls got hammered. The Sensex closed at 18602, down 678 points and Nifty closed at 5561, down 219 points from the previous close. All the sectorial indices closed in the negative. The BSE Midcaps Index got smashed and was down by 4.5% while BSE Smallcaps Index was down 3.5%. The BSE Realty Index was down 5%, BSE Oil & Gas Index down 3.8%, BSE Capital Goods Index and BSE Bankex Index were both down by 5.8%. The market breadth was bad with advances at 131 against declines of 1070 on the NSE.

The fall may be a good opportunity to buy stocks like MRPL and Neyveli Lignite that have good long-term perspectives, says Anil Maghnani, technical analyst, on CNBC-TV18. MRPL is trading at Rs 107, down 9% and Neyveli Lignite is trading at Rs 177, down 15% on the BSE.