FIIs continued to pull money from the Indian markets - ZENMoney

Domestic indices opened the day on a gap down note following the sluggish global cues. Rupee breaching its previous low in early trade coupled with high rise in crude prices over concerns that the US will take military action against Syria dampened the market sentiment. Growing concerns over increase in government's subsidy burden following the passage of the food security bill also weighed on the markets. However, Markets pared its losses post noon on account of value buying witnessed in front liners. Also, with rupee recovering from its days low, indices ended the day on a flat note.

On a sectoral front, Consumer Durables sector is the heavy loser of the day followed by Realty, Banking, Oil&Gas, Capital goods andFMCGsectors. IT sector continued as top gainer of the day ­ on the back of weakness continued in rupee. Metal, Health Care, Power and Auto sectors are other gainers of the day.

Domestic indices are likely to open on a negative note today tracking global market movement and remain volatile thereafter tracking domestic cues. Concerns about a possible US military intervention against Syria will keep global markets jittery in the near term.

Back home, the F&O expiry today can lead to volatility in the market. The market will take direction from the rupee and crude price movement. Rupee sliding to its historic lows and possibility of breaching even that in the coming days will keep markets wary in the near term.

Crude has spiked to a 18 month high on escalating tensions in Syria and concerns about it spreading to other neighbouring countries. Rising crude prices along with weak rupee will strain the already burgeoning current deficit.

FII continued to offload money from the Indian markets. As per provisional data, they net sold equities worth Rs 1120.43 crore on Wednesday. Only a substantial improvement in the FII flow can result in some stability in the market.

For the Nifty 5363, 5440 and 5639 are the immediate resistance levels, while 5163, 5041 and 4842 are its immediate support levels.

For the Sensex 18250, 18503 and 19156 are the immediate resistance levels, while 17595, 17195 and 16542 are its immediate support levels.

Source : Equity Bulls

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