FIIs sold Rs. 1,424.31 crore in equity markets on Tuesday - ZENMoney

Domestic indices opened the day on a gap down note following sluggish global cues. Investors' sentiment remained cautious on concerns over depreciating rupee, which hit a fresh all time low, breaching the 64/$ mark in today's early trade. Investors' are awaiting minutes of the US Federal meeting to get more clarity on the QE which would be the next trigger for the market. However, markets recovered some of its losses with rupee recovering marginally from its record lows as Reserve Bank of India (RBI) has reportedly intervened in the foreign exchange market to stem the rupee slide. Markets continued to trade in negative in the late afternoon session on account of selling pressure witnessed in front line counters and taking weak cues from global markets. Indices ended the day in marginal red.

On a sectoral front, Metal stocks remained as top gainers of the day followed by Realty, Banking, Oil & Gas and FMCG. CD remained as top loser of the day followed by Auto, Health Care, IT, Capital Goods and Power. Consumer Durables sector witnessed selling pressure after the government imposed new restrictions on foreign exchange outflows and gold imports in an attempt to prop up the rupee.

The Indian markets are likely to have a flat to slightly negative opening today on mixed cues coming in from domestic and global markets. Uncertainty about stimulus measures ahead of the Fed's meet later in the day will keep global markets sentiments subdued.

Back home, the RBI announced fresh measures at the end of the day yesterday which are aimed at arresting dip in long term bond yields and shield banks from incurring financial losses due to declining bond prices. These measures are likely to bring some relief to the markets. The market would be eyeing the rupee for further cues. Any pullback in the rupee can result in short rally in the market.

Crude prices will continue to remain rangebound in the near term pressured by speculations that the Fed would pare down its stimulus program from September. Such move can result in curbing of interest in commodities which can results in crude prices going downward in the short term.

FIIs continued to pullback from the Indian markets and as per provisional figures they net sold a staggering Rs 1,424.31 crore from equity markets on Tuesday. Continuation of this trend can results in the markets touching new lows.

For the Nifty 5445, 5487 and 5599 are the immediate resistance levels, while 5332, 5263 and 5152 are its immediate support levels.

For the Sensex 18379, 18510 and 18846 are the immediate resistance levels, while 18042, 17839 and 17503 are its immediate support levels.

Source : Equity Bulls

Keywords