Indian Markets close flat on inflation woes - ZENMoney

Domestic Indices opened the day on a gap up note following firm global cues. Investors sentiment remained firm after rupee witnessed sharp recovery in the morning session on increased capital inflows and dollar selling by exporters. Markets also witnessed some support with the market regulator Sebi's latest step, allowing overseas entities to invest in government securities without any auction mechanism. However, market sentiment turned pessimistic after higher than expected August WPI inflation data reported at 6.10%, as compared to 5.79% (provisional) for the previous month. Markets continued their weak trade in the afternoon session ignoring positive cues from European markets on account of selling in front line counters. Indices ended the day on a flat note.

On a sectoral front, Banking Sector came as top gainer of the day on the back of RBI monetary policy scheduled this week. FMCG and Auto sectors are other gainers of the day, while Health care sector is the top loser of the day. Realty, IT, Metal, Capital Goods, Consumer Durables, Power and Oil & Gas sectors are among other sectors that traded in red.

The Indian markets are likely to open on a sideway note tracking global cues and may remain range bound thereafter tracking domestic cues. All eyes will be on the two day FOMC meet which will start from today.

Back home, sentiments will remain weak as the disappointing inflation numbers have put to rest any slim chances of a rate cut in the next policy meet on the 20th.

The market will also be watching the rupee movement for cues. The rupee which witnessed significant strengthening during the last week will be affected if the Fed starts its tapering measures.

Crude prices could witness some decline in the coming days on reduced threat of a possible military strike on Syria.

FIIs remain positive on the Indian market. As per provisional figures they net bought equities worth Rs 282.7 crore on Monday. The outcome of the FOMC meet can bring in some clarity on the FII movement.

For the Nifty 5933, 6025, 6184 are the immediate resistance levels, while 5773, 5706, 5547 are its immediate support levels.

For the Sensex 20021, 20299, 20789 are the immediate resistance levels, while 19530, 19318, 18827 are its immediate support levels.

Source : Equity Bulls

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