Markets slip further as FIIs dump Indian Stocks

- MARKET WRAP by Alex Mathews, Research head - Geojit

February 5, 2010: The markets had opened on a negative gap tracking global markets and slipped further down and breached the psychological support at 4700. We saw minor recovery in the second half of the day which was short lived and finally came to a close for the day in red. The other day, the Global markets had crashed on the back of increased jobless claim in US, Europe's sovereign debt and a fall in the commodities market dampened the sentiment back in our country and our markets opened inbright red.

The auto stocks fell as government panel recommended additional duty on diesel powered vehicles. Realty sectors shares fellon fears of an interest rate hike and the metal shares fell as the metal prices slummed in the LME.

In the second part of the day, we saw minor recovery as US index futures showed minor recovery and in the domestic front, Chairman of the PM's economic advisory council said that the government is in no hurry to withdraw the economic stimulus and is expected to be a gradual one. But this recovery was short lived as the US index futures moved into red. In the second part of the day, the European markets fell with banks extending losses made on worries on debt positions of Greece and Spain. Finally our markets came to a close with Sensex down 2.68% and Nifty down 2.61%.

The outlook of the market is weak and Nifty is having major support at 4634 and if it falls below this then further selling can be seen and may come down towards 4512. Resistance for Nifty is at 4766 and 4814 levels.

Source : Equity Bulls

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