The market is falling fast. The Sensex is currently trading at 19242, down 391 points while Nifty is at 5768, down 138 points from the previous close. The BSE Midcaps is down by 2.5%. The market breadth has turned negative with advances at 544 against declines of 651 on the NSE.

The correction in the midcaps is not disturbing and likely to be a short-term reversal, says Rajat Bose, technical analyst, on CNBC-TV18. It was getting too easy to buy midcap stocks and make money. The weak hands will now fall out in this correction, he adds.

The Nifty has crucial support at 5752 and if it breaks that it can go to 5700, says Rajat Bose, technical analyst, on CNBC-TV18. There is reason for concern as the market witnesses delivery-based selling, he adds. The market was overheated and an intra-day running correction seemed imminent.

The Indian market seems overvalued at current levels, says Jonathan Garner of Morgan Stanley, on CNBC TV18. Corporate earnings growth cannot be sustained at current levels and Taiwan is favoured over India in the MSCI Index. A suitable valuation for the Sensex would be at PE of 17x, he says. Morgan Stanley is bullish on the telecom, energy and steel sectors.