Indian Markets witness continued selling pressure - ZENMoney

Domestic indices opened the session on a sideways note with positive bias on the back of strong upmove in Infosys after the company's co-founder NR Narayana Murthy was re-inducted into the board as executive chairman and additional director. However, the indices fell due to weakness in Asian market on uncertainty over current US stimulus. The market continued to trade lower on selling pressure witnessed due to growth concerns on the back of a fall in HSBC manufacturing PMI to 50.1, a four years low from 51 in Apri 2013.

On a sectoral basis, Teck followed by IT on the back of gains in infosys after the board on Saturday appointed NR Naryana Murthy as executive chairman for a period of five years closed as top gainer for the day. Metal and Realty sectors closed in green. Baring from the four sectors, others closed in red. Maruti Suzuki shares slipped due to a 14% drop in May total sales.

Domestic indices are expected to open on a sideway note with a negative bias tracking both global and domestic market movement. Mixed data coming in from US has raised concerns about the stability of US recovery.

Back home, sentiments will remain weak on poor economic indicators which indicate that the slow growth in the domestic economy is likely to continue for some more time.

The market would be tracking the FII flow and rupee movement for further direction. The rupee is likely to continue to remain under pressure in the short term reflecting the strength in the dollar.

Crude prices are likely to get support from weak US economic data which has raised hopes that the Fed will continue with its stimulus programs for some more time.

FIIs continued to be net sellers in the Indian market for the second consecutive day. As per provisional data, they net sold equities worth Rs.86.67 crore on Monday. Continuation of this trend can take the market on a downward track.

For the Nifty 5995, 6051, 6145 are the immediate resistance levels, while 5900, 5860, 5766 are its immediate support levels.

For the Sensex, 19800, 19990, 20308 are the immediate resistance levels, while 19481, 19352, 19034 are its immediate support levels.

Source : Equity Bulls

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