Sluggish global cues leads to another gap down for Indian Markets - ZENMoney

Domestic indices opened the day on a gap down note following sluggish global cues. Investors' remained cautious with rupee further slipping to its all time low leading to fears of increased inflation and worries about financing of India's record current account deficit. Also, report that FIIs sold shares worth a net Rs 563.23 crore in previous session dampened the market sentiment. Rupee's depreciation to fresh lows despite policy makers efforts to defend the currency, is affecting investors' sentiment badly. Slow pace of economic reforms and lack of positive triggers resulted in continued selling pressure throughout the day. Markets continued their selling pressure in the afternoon session with negative cues from European markets. Indices ended the day in red.

On a sectoral front, Metals and IT sectors are the only sectors which witnessed some buying interest in the market. Banking and Auto sectors are top losers of the day followed by Health care, Consumer Durables, FMCG, Capital Goods and Oil & Gas. Power and Realty sectors ended the day with marginal losses.

The Indian markets are likely to open on a negative note tracking weak domestic and global cues. Global markets are likely to remain subdued ahead of the release of the Fed meet later in the week.

On the domestic front, the markets will be weighed down by the continued slide in the rupee which has touched all time low in yesterday's trade. With no respite in sight, the rupee is expected to fall further in the short term.

Crude prices are likely to be rangebound in the near term and get support from increasing geopolitical risk from the Middle East. High crude price at the international level and weak rupee has pushed up the import bill affecting the already high CAD.

Weak macros, sliding rupee and and signs of US tapering its stimulus measures are leading to FII exodus in the Indian markets. As per provisional figures they net sold equities worth Rs 680.08 crore on Monday. Continuation of this trend can take the markets to new lows.

For the Nifty 5490, 5565 and 5704 are the immediate resistance levels, while 5350, 5286 and 5147 are its immediate support levels.

For the Sensex 18551, 18793 and 19242 are the immediate resistance levels, while 18101, 17896 and 17448 are its immediate support levels.

Source : Equity Bulls

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