New Delhi, June 1 -- The steep market correction in the last 30 minutes of Friday's trading was likely a one-off affair due to a technical index review, with the stage set for a bounce within a narrow 300-point range that the Nifty has largely traded over the past month, analysts said.

The assumption of a likely bounce rests on two factors. One, a deviation between the cash and futures markets; and two, the potential involvement of high-frequency traders (HFTs) who took advantage of the MSCI index rebalancing.

When the Nifty plunged in the last half hour of trade to settle 1.5% lower at 23,547.75 on Friday, the Nifty futures contract closed just a percent down at 23,744.6. Normally, spot and futures prices move in tandem. However, the u...