Indian Market will continue to witness high volatility on the rupee meltdown - ZENMoney

Domestic indices opened the day on a gap down note following the sluggish global cues. Investors' sentiment remained under pressure with rupee once again weakening against the dollar in early trades due to month-end dollar demand. Also, concerns related to Current Account Deficit as Lok Sabha passed the Food Security Bill, further weakened the sentiment in the market. Indices continued its pressure amid concerns over adverse data showing that foreign funds remained net sellers on Monday. Additionally, worries over possible downgrade of India's sovereign rating by by global rating agency, Fitch also added to the pessimistic environment in the markets. Markets continued their downside pressure in the afternoon session on account of selling witnessed in frontline counters by taking negative cues from European counterparts. Indices ended the day with huge losses.

On a sectoral front, IT sector is the only gainer of the day on the back of weakness continued in rupee. Banking, Capital Goods, Power, Realty and Metals sectors are the major losers of the day followed by FMCG, Auto, Consumer Durables, Oil & Gas and Health Care sectors.

Domestic indices are likely to open the day on a negative noe mirroring global market movement and remain volatile thereafter tracking domestic cues. Tensions in Syria and speculations of US and UK military interventions will keep global market mood down in the near term.

Back home, the market will continue to witness high volatility on the rupee's relentless slide down breaching new lows. The rupee is expected to witness further weakness in the next few days on higher dollar demand from oil companies to meet their month end obligations.

Oil & Gas stocks will be in limelight as the Government mulls a one time diesel price hike by Rs 5/ litre.

Crude is likely to inch up as escalating tension in Syria has sparked concerns about supply disruptions. Further rise in crude prices will hurt already weak Indian market sentiments.

FIIs went on a selling spree in the equity markets yesterday due to weak sentiments. As per provisional figures, they net sold equities worth Rs 1373.99 crore on Tuesday. Further selling can take the market to new lows.

For the Nifty 5386, 5483 and 5636 are the immediate resistance levels, while 5232, 5176 and 5023 are its immediate support levels.

For the Sensex 18312, 18656 and 19195 are the immediate resistance levels, while 17773, 17577 and 17039 are its immediate support levels.

Source : Equity Bulls

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