FII flow witnesses slow-down - ZENMoney

Domestic indices opened the session on a sideways note with negative amid weak cues coming in from global markets. Global risk appetite was frail amid fear that the Federal Reserve will reduce stimulus sooner-than-expected and after Japan?s Prime Minister failed to cheer investors through his growth strategy. The fall was restricted in the noon session and the markets ended flat on the back of the strength in heavyweights along with short coverings witnessed in Oil&Gas and Realty stocks.

On sectoral front, Oil & Gas sector and Realty stood as top gainers on the back of short coverings followed by Metal, PSU, Capital Goods, HC, Auto, power and Bankex. IT closed as top loser followed by Tech, FMCG and Consumer Durables.

The Indian markets are likely to open sideways with a negative bias mirroring global market movement. The continuing uncertainty about the Fed continuing with the stimulus measures will keep market sentiments down in the near term.

On the domestic front, the markets are likely to remain range bound in the next few days due to the absence of any major triggers. Monsoon movement and the RBI policy meet would be the next big triggers for the market in the near term.

The key short term indicators for the market would be the rupee movement and the FII flow. FII flow has been witnessing a slowdown in the Indian market since the last few days. As per provisional figures they net bought equities worth Rs 88.49 crore on Wednesday. Unless there is a pickup in the FII flow, the market will continue to remain lacklustre.

The market will also be eyeing the rupee movement for direction. The rupee, which is nearing record lows is expected to remain under pressure in the near term on uncertainty in the global markets and on weak domestic cues.

Crude prices are expected to be rangebound with a positive momentum on the back of reports of US stockpiles unexpected fall. However, weak demand will keep a check on the price movement.

For the Nifty 5945, 5966, 6018 are the immediate resistance levels, while 5893, 5862, 5811 are its immediate support levels.

For the Sensex, 19635, 19702, 19865 are the immediate resistance levels, while 19471, 19374, 19211 are its immediate support levels.

Source : Equity Bulls

Keywords