"Nifty is likely to touch lower levels near 9,400-9,390 in the next trading session where a close below could prove even worse for the near-term", Sushanshu added.
The Sensex of the BSE, which opened at 30,638.88 points, was trading at 30,664.94 points (at 9.21 a.m.), higher 200.02 points or 0.66 per cent from the previous day's close at 30,464.92 points.
The FMCG sector continued to remain buyers fancy on the back of the GST Council fixing rates for most of the items last week.
Major index gainers were ITC 6.08 per cent, InfraTel 2.37 per cent, Zeel 1.63 per cent, Larsen 1.59 per cent, HCL Tech 1.51 per cent, Tata Motors 1.32 per cent and Adaniport 1.30 per cent.
In the midcap and smallcap segments, the S&P BSE Midcap index slumped 177 points, thanks to a free fall in the shares of Bank of India, Bajaj Finserv and Bajaj Holding. Common use products such as hair oil, soaps and toothpaste would cost less from July 1 when GST is expected to roll out, brokers said. Trading sentiment also got a boost after the defence ministry last week broadly finalised a policy under which select private firms will be roped in to build military platforms like submarines and fighter jets in India in partnership with foreign entities.
ITC saved the day for the benchmark index as it gained more than 6 per cent and closed at Rs 303.65 per share on Monday.
The benchmark BSE Sensex rallied over 227 points in early trade on Monday on buying in FMCG, banking and IT stocks by investors enthused by global rally in stock markets. All sectoral indices led by FMCG, realty, capital goods, metal and auto were in the green, rising up to 1.76 per cent.
Among individual stocks, Suzlon Energy shot up to hit a 16-month high after the company reported a 50.95 per cent increase in March quarter consolidated sales at Rs 4,992.59 crore.
In the Asian region, the key indices such as Hong Kong's Hang Seng rose 0.86 %, Japan's Nikkei by 0.45 %, while Shanghai Composite finished 0.48 %.
In the domestic market, selling was also seen in broader markets as BSE mid-cap index and small-cap fell 1.21 per cent and 1.14 per cent.
SBI was the biggest index loser along with Lupin. London's FTSE was up 0.39 per cent.