Heavy Selling in frontliners push Indian Indices down - ZENMoney

Domestic indices opened the day on a lackluster note following mixed global cues amid concerns over US stimulus roll back. Investors' sentiments got dampened after Indian rupee slipped to all time low in early trade despite a slew of measures announced by the central bank aimed at boosting inflows and curbing outflows. Government imposing new restrictions on foreign exchange outflows and gold imports in new attempt to prop up the rupee, were also seen hampering an already slowing economy have further dented the market sentiment. Markets continued their weakness in the afternoon session with heavy selling witnessed in front liners and by taking support from negative European markets. Indices ended the day in deep red.

On a sectoral front, All the sectors in the indices were traded in red. Consumer Durables is the top loser of the day after shares of jeweler makers tumbled with Reserve Bank of India's decision of banning imports of gold coins and medallions. Other sectors like Realty, Metal, Banking, Capital Goods, Oil & Gas, Power FMCG, Auto, IT and Health Care also ended the day in red.

Domestic indices are expected to open the day on a side way note with a negative bias tracking global market movement and remain choppy thereafter on weak domestic cues.

On the domestic front, the rupee will continue to remain in the focus as it trades near its all time lows. All eyes will now be on the government and the RBI to see what steps they will take to control the slide in the rupee.

Escalating tensions in Egypt and concerns about supply disruptions from that country is likely to keep crude prices higher in the near term. Further rise in crude will affect the already struggling Indian economy.

The FII went on a selling spree on Friday as weak macros and spiralling rupee affected sentiments. As per provisional data, they net sold equities worth Rs.563.23 crore on Friday (17th Aug). Any further selling from them can take the market on a downward spree.

For the Nifty 5651, 5794 and 6015 are the immediate resistance levels, while 5430, 5353 and 5132 are its immediate support levels.

For the Sensex 19086, 19574 and 20326 are the immediate resistance levels, while 18335, 18072 and 17320 are its immediate support levels.

Source : Equity Bulls

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